What type of agreement is NAFTA classified as?

NAFTA, the North American Free Trade Agreement, is classified as a trade agreement. It was established to create a trilateral trade bloc between the United States, Canada, and Mexico, aimed at reducing trade barriers, such as tariffs and quotas, promoting the free flow of goods and services across borders among these countries.

The primary goal of NAFTA was to enhance economic cooperation and increase trade between the member countries while fostering economic growth. By eliminating many tariffs and establishing provisions for trade, NAFTA significantly impacted the volume of trade and investment in North America since its inception.

Trade agreements like NAFTA are crucial for facilitating international trade by providing a set of rules and regulations that govern how trade is conducted between countries. While there are aspects of labor, investment, and environmental considerations addressed in NAFTA, its primary classification is as a trade agreement focused on the economic exchange of goods and services.