The North American Free Trade Agreement (NAFTA) was signed between the United States, Canada and Mexico. For the participating countries, what did NAFTA primarily call for?

Introduction / Context:
The North American Free Trade Agreement, commonly known as NAFTA, was a major trade agreement between the United States, Canada and Mexico. It aimed to reshape economic relations in North America by changing how goods and services move across borders. General knowledge and economics questions often ask about the core purpose of NAFTA, especially in terms of trade restrictions and tariffs. This question checks whether students understand that NAFTAs main goal was to reduce barriers to trade.

Given Data / Assumptions:

NAFTA is a free trade agreement between the United States, Canada and Mexico.
We are asked what NAFTA called for among the participating countries.
The options mention removal of trade restrictions, removal of workers rights, creation of a single currency and a challenge to United States economic leadership.
We assume the question focuses on the core economic objective of NAFTA as defined in the agreement text and widely reported in studies on trade.

Concept / Approach:
Free trade agreements are designed to reduce or eliminate tariffs, quotas and other trade barriers between member countries. NAFTA followed this pattern by calling for the gradual removal of trade restrictions among the three North American countries, thereby encouraging cross border trade and investment. It did not abolish workers rights, did not create a single currency and was not framed as a direct challenge to United States economic leadership. Therefore, the correct concept for NAFTA is trade liberalisation and the gradual removal of trade barriers.

Step-by-Step Solution:
Step 1: Recall that NAFTA is an example of a free trade agreement, so its main goal should involve trade barriers and tariffs. Step 2: Identify the option that clearly refers to trade restrictions, namely the gradual removal of trade restrictions. Step 3: Recognise that removing workers rights is contrary to the social and labour side agreements that accompanied NAFTA, which sought to address labour concerns, not eliminate rights. Step 4: Note that NAFTA did not establish a single currency, unlike some aspects of European integration, and it was promoted by the United States, not primarily intended as a challenge to US leadership. Step 5: Therefore, choose the gradual removal of trade restrictions as the correct answer.

Verification / Alternative check:
Students can verify this by looking at summaries of NAFTA in economics textbooks or reliable online sources, all of which emphasise tariff reduction, elimination of quotas and liberalisation of trade in goods and services. None of these standard descriptions state that NAFTA removed workers rights or introduced a single currency. This cross check confirms that the central aim was to remove or reduce trade barriers over time among the three participating countries.

Why Other Options Are Wrong:
A removal of workers rights: NAFTA was controversial partly because of labour issues, but formally it did not call for removing workers rights; there were side agreements on labour standards.

The development of a single currency: Unlike the European Union with the euro, NAFTA did not create a shared currency and each country retained its own national currency.

A challenge to United States economic leadership: The agreement was negotiated and signed with strong support from the United States, so describing it as a challenge to US leadership is inaccurate.

Common Pitfalls:
Some learners may confuse NAFTA with deeper forms of economic integration, such as economic unions that involve a common currency or broad political institutions. Others might be influenced by debates over labour and environmental impacts and mistakenly think the agreement formally aimed to weaken workers rights. To avoid such errors, it is helpful to remember that NAFTA is a typical free trade agreement and focus on the key phrase reduction of tariffs and trade barriers when answering related questions.

Final Answer:
For the participating countries, NAFTA primarily called for the gradual removal of trade restrictions.