The North American Free Trade Agreement (NAFTA), implemented in January of 1994, created a situation in North America in which there are no taxes on most products imported and exported between the three countries. Ideally, the governments of Canada, the U.S. and Mexico believed that breaking the trading barriers would increase jobs and other things as it bettered each of their economies. NAFTA, however, has not necessarily helped the economies in the way in which the governments had projected.

There was much speculation before the signing of the treaty that NAFTA would not work out the way it was projected to. Some economists believed that one major problem which NAFTA would create, as opposed to what the governments thought, is loss of jobs. "In Canada and the United States, much of the political opinions against NAFTA has centered around the low wage rates in Mexico and the possibility of jobs being moved south of the Rio Grande River." It had seemed obvious for some that many wealthy fa

"Canada's Bank of Montreal has launched the first mutual fund, to be marketed in all three countries, targeting companies poised to cash in on the North American Free Trade Agreement." Companies such as Bombardier who have constructed plants in Mexico are prime candidates of this mutual fund.

Mexico's economy has gotten a little better. Canadian and U.S. companies invested $2.4 billion in Mexico in the first eight months of 1994, accounting for 55% of Mexico's total foreign direct investment. This is good for the Mexican economy in the long-term as well as in the short-term. In the long-term, these investments will lead to more exports. Corporations from Canada and the U.S. build plants in Mexico, and export those goods from Mexico back into the Canadian and United States economy.

Another thing which NAFTA affects is the environment. NAFTA supporters promised that the agreement would lead to increased investment in environmental cleanup and less maquiladoras along the U.S.-Mexico border. However, many communities still lack access to both water and sewage systems. "Today, only 10 percent of Mexico's yearly output of 7 million tons of hazardous waste receives adequate treatment, with the rest poured into clandestine waste dumps or municipal sewers." Maquiladoras are plants owned by foreign companies which send raw materials to Mexico for assembly. NAFTA has eliminated the duty on the importation of those goods back to Canada and the United States. NAFTA has caused an increase in the amount of maquiladoras. This has caused an increase in the amount of pollution in Mexico. NAFTA has taken emphasis away from the global environment as it puts the production of goods and exportation first. If workers aren't healthy, are we not headed for lower levels of pro!

Dentzer, Susan. "The Pain and Gain of Trade." U.S. News Sept. 1992: 62+.

USA Buy NAFTA?" The Nation June 14, 1993.

Another advantage NAFTA gives to the Canadian economy is higher productivity levels. Canadian corporations with plants in Mexico produce goods at lower costs. Canadi

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