Which trade agreement among Canada, the United States and Mexico encourages free trade between these North American countries?

• A. Transatlantic Trade and Investment Partnership
• B. North American Free Trade Agreement
• C. NAFTA-USMCA
• D. North American Economic Partnership

Answer: (C)

The key idea is how trilateral trade among Canada, the United States, and Mexico is organized and updated over time. The arrangement that currently governs and encourages free trade among these three nations is the NAFTA-USMCA option, because it reflects the modern framework—the United States–Mexico–Canada Agreement—that replaced the original NAFTA in 2020 and continues to promote tariff-free trade while updating rules on autos, labor, and other provisions. The other choices don’t fit: the Transatlantic Trade and Investment Partnership is between the US and the EU, not these three; the original North American Free Trade Agreement is older and has been supplanted by the USMCA; and North American Economic Partnership is not the actual agreement in effect.