Effective in 1994, the North American Free Trade Agreement (NAFTA) has substantially lowered tariffs and other trade and investment restrictions. Consequently, three-way trade expanded exponentially as did inward and outward investment in Mexico, Canada, and the United States through 2000. However, both trade and investment decreased in 2001 and 2002 because of a global recession. Critics of NAFTA argue that jobs have been destroyed and wages suppressed in both Mexico and the U.S. But these claims do not hold up to careful scrutiny. Though many points of friction remain among the three NAFTA partners, the agreement must be considered a qualified success.
Weinstein, B.L. (2004), "HAS NAFTA FULFILLED ITS PROMISE?", Rugman, A.M. (Ed.) North American Economic and Financial Integration (Research in Global Strategic Management, Vol. 10), Emerald Group Publishing Limited, Bingley, pp. 339-348. https://doi.org/10.1016/S1064-4857(04)10018-1
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