Which free trade agreements are formed to reduce trade barriers between nations? A. World Trade Organization B. European Economic Community C. European Union D. North American Free Trade Agreement E. United States Department of Agriculture

Correct option is D

The correct answer is (D) A & D Only

Explanation:
• Free Trade Agreements (FTAs) are arrangements between two or more nations to reduce barriers to imports and exports among them.
• Statement A (WTO) is correct: The World Trade Organization is a global international organization dealing with the rules of trade between nations, aiming to reduce tariffs and other barriers.
• Statement D (NAFTA) is correct: The North American Free Trade Agreement was a landmark pact between the US, Canada, and Mexico designed to eliminate most tariffs on products traded between them.

Information Booster:
• While the European Union (EU) involves free trade, it is a Political and Economic Union that goes far beyond a simple trade agreement, involving a common currency and shared governance.
• The USDA (Option E) is a domestic government department of the United States and not an international trade agreement.

Additional Knowledge:
• European Economic Community (Option B): While it was a precursor to the EU focused on economic integration, the most prominent contemporary examples of trade-barrier reduction agreements in this list are the WTO and NAFTA.
• Trade barriers can include tariffs (taxes on imports), quotas (limits on quantity), and subsidies to domestic producers.