In the 1988 presidential election, Bush defeated Democrat Michael Dukakis, becoming the fourth incumbent vice president to be elected president and the first to do so since Martin Van Buren in 1836. Foreign policy drove the Bush presidency, as he navigated the final years of the Cold War and played a key role in the reunification of Germany. Bush presided over the invasion of Panama and the Gulf War, ending the Iraqi occupation of Kuwait in the latter conflict. Though the agreement was not ratified until after he left office, Bush negotiated and signed the North American Free Trade Agreement (NAFTA), which created a trade bloc consisting of the United States, Canada, and Mexico. Domestically, Bush reneged on by enacting legislation to raise taxes with the justification of reducing the budget deficit. He also signed the Americans with Disabilities Act of 1990 and appointed David Souter and Clarence Thomas to the Supreme Court. Bush lost the 1992 presidential election to Democrat Bill Clinton following an economic recession, his turnaround on his tax promise, and the decreased emphasis of foreign policy in a post–Cold War political climate.