Final answer:
The North American Free Trade Agreement (NAFTA) is a trade agreement between Canada, the United States, and Mexico. Its goal is to eliminate trade barriers and increase economic opportunities among the three nations. Canada agreed to NAFTA for benefits like secure access to markets and elimination of tariffs.
Step-by-step explanation:
The North American Free Trade Agreement (NAFTA) is a trade agreement between Canada, the United States, and Mexico. It was established in 1994 to eliminate trade barriers, such as tariffs, between the three nations. The goal of NAFTA was to increase economic opportunities, open up new business operations, and promote competition with other global trade entities.
Canada agreed to NAFTA for several reasons. Firstly, it provided more secure and stable access to the US and Mexican markets for Canadian goods. Additionally, NAFTA eliminated many tariffs and opened up previously protected sectors, creating more trade opportunities for Canada. Lastly, the agreement set rules for settling trade disputes, which offered further benefits and protections for Canadian businesses.