Because the action and the reaction forces act on different objects
Explanation:
Newton's third law of motion states that:
"When an object A exerts a force on an object B (action), then object B exerts an equal and opposite force (reaction) on object A"
From the statement above, we clearly see that the two forces mentioned in the law act on different objects. In fact, the action is exerted on object B, while the reaction is exerted on object A.
When we are considering the free-body diagram of an object, we just represent all the forces acting on that object, but not the forces exerted on other objects: this means that the action and the reaction never appear in the same free-body diagram of the same object, so they do not cancel out, simply because they are applied to different objects.
Learn more about Newton's third law:
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