In the 1988 presidential election, Bush defeated Democrat Michael Dukakis, becoming the first incumbent vice president to be elected president in 152 years. 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 a 1988 campaign promise by signing a bill that increased taxes and helped reduce the federal 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 and the decreased emphasis of foreign policy in a post–Cold War political climate.