Foreign Service Officer Test (FSOT) Practice Exam 2025 – All-in-One Prep Guide for Exam Success!

Question: 1 / 400

Which significant U.S. trade agreement is known for promoting trade among North American countries?

TPP (Trans-Pacific Partnership)

NAFTA (North American Free Trade Agreement)

The significant U.S. trade agreement known for promoting trade among North American countries is NAFTA, the North American Free Trade Agreement. NAFTA was established in 1994 and aimed to eliminate trade barriers between the U.S., Canada, and Mexico. This agreement facilitated a significant increase in trade and investment flows among these three countries, leading to economic integration and the formation of a larger North American market.

While other agreements like the USMCA, which replaced NAFTA in 2020, also focus on trade among U.S., Canada, and Mexico, NAFTA is the original agreement that laid the groundwork for such trade relations. The TPP was designed for trade among countries in the Asia-Pacific region, and CAFTA involved Central American nations, which are not part of the North American trading bloc. Therefore, NAFTA is distinct in its targeted focus on the North American countries involved.

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CAFTA (Central America Free Trade Agreement)

USMCA (United States-Mexico-Canada Agreement)

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