What does CAFTA stand for?

The correct answer is Central American Free Trade Agreement, commonly referred to as CAFTA. This agreement was established to promote trade and economic cooperation among the United States and several Central American countries, specifically Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. CAFTA aims to reduce tariffs and eliminate trade barriers, thereby increasing economic opportunities for member countries through improved access to each other's markets.

The specific focus of CAFTA is on fostering closer economic ties and enhancing trade relations in the region, ultimately supporting economic growth and development. By reducing trade barriers, the agreement encourages investment and promotes a more competitive environment across the member countries.

Other options do not align with the established trade agreements recognized in international trade. For instance, while "Comprehensive Agreement for Free Trade Access" or "Canada-Asia Free Trade Agreement" may imply some form of trade agreement, they do not accurately represent what CAFTA stands for or the entities involved in it. The term "Caribbean American Free Trade Alliance" also does not match the recognized CAFTA initiative, reinforcing the uniqueness of the Central American Free Trade Agreement in establishing trade relations in the specified region.