NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that:
A) the agreement does not leave the door open for discretionary protectionism.
B) the governments of all three nations decided to eliminate tariffs.
C) the issue of illegal immigration from Mexico to the United States is resolved.
D) restrictions are imposed on the use of goods, services, and investments.
E) restrictions are imposed on labor movements among members.
Answer: B) the governments of all three nations decided to eliminate tariffs.