For years prior to NAFTA,the United States and Canada had the largest bilateral trade agreement in the world.This agreement was aptly called a customs union.

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A customs union involves countries agreeing to eliminate tariffs between them and adopt a common external tariff on imports from non-member countries. The US and Canada had a Free Trade Agreement, not a customs union, which eliminated tariffs between them but did not establish a common external tariff.

For Years Prior to NAFTA,the United States and Canada Had