What does NAFTA stand for, and what purpose does it serve?

The choice indicating that NAFTA stands for the North American Free Trade Agreement and serves to facilitate free trade is accurate because NAFTA was designed to create a trilateral trade bloc between the United States, Canada, and Mexico. Instituted in 1994, its primary goal was to eliminate barriers to trade and investment between the three nations, allowing for the more seamless exchange of goods and services. By reducing tariffs and implementing measures to promote fair competition, NAFTA aimed to boost economic growth and collaborative trade relationships among the member countries. As a result, this agreement has significantly impacted trade patterns, often leading to increased trade volumes and economic integration within North America.