The North American Free Trade Agreement (NAFTA) is an agreement that was signed in 1994 between the United States, Canada, and Mexico to promote free trade among these countries. The primary purpose of NAFTA is to encourage economic growth and development by facilitating trade and investment between the signatories.

NAFTA was created to eliminate barriers to trade and investment between the three countries. This was achieved by eliminating tariffs and other trade barriers, such as import quotas, that were hindering the free movement of goods and services. This has allowed businesses in the three countries to increase their productivity and efficiency, while also creating new jobs and boosting economic growth.

The agreement also helps to promote cross-border investment by providing legal protections and guarantees to investors and businesses. This includes the protection of intellectual property rights, the provision of fair and equitable treatment for investors, and the ability to resolve disputes between investors and host governments.

Another important purpose of NAFTA is to create a more competitive market for goods and services. By eliminating barriers to trade, businesses in the three countries have greater access to new markets and customers. This has helped to spur innovation and create new opportunities for businesses to grow and expand.

Overall, the primary purpose of NAFTA is to create a more integrated and prosperous North American economy. By promoting free trade and investment, the agreement has helped to create new economic opportunities, raise living standards, and improve the quality of life for millions of people in the United States, Canada, and Mexico.