Countries Nafta People Environmental Economists Importing Exporting Goods

The North American Free Trade Agreement (NAFTA) is a "trade agreement" (an official document in which countries agree how they will buy and sell each other's products) between Canada, the United States, and Mexico. It was signed by the nations' leaders on December 17, 1992, but it went through many changes before it was approved by the "legislature" (law-making part of government) of each country. NAFTA didn't actually become part of U.S. law until January 1st, 1994.

Some people think that NAFTA has "benefited" (helped) trade among the three countries, but other people "criticize" (say bad things about) it. Many Americans are worried that NAFTA doesn't "protect American workers," because it sends jobs to other countries and especially Mexico, where people are willing to do the same work for less money. Other Americans worry about the environmental effects of NAFTA, arguing that the "laxer" (less strict; easier) environmental regulations in Mexico and Canada give foreign companies an "unfair competitive advantage," or the ability to make and sell products for a lower cost because they don't have to "comply with" (follow) as many environmental laws as U.S. companies do.

Economists in all three countries have "conducted" (done) many studies on the

"effects" (consequences; results) of NAFTA, but they have reached very different conclusions. Some economists think that "on the whole" (altogether; overall) it has been beneficial, helping the three economies to grow and giving employees more opportunities. Other economists think that the "harmful" (damaging; bad) effects have "outweighed" (been bigger or stronger than) the benefits.