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This free-trade zone was signed by Canada, Mexico, and the United
States and took effect on Jan. 1, 1994. NAFTA immediately lifted
tariffs on the majority of goods produced by the signatory nations.
It also calls for the gradual elimination, over a period of 15 years,
of most remaining barriers to cross-border investment and to the
movement of goods and services among the three countries. Major
industries affected include agriculture, automobile and textile
manufacture, telecommunications, financial services, energy, and
trucking. NAFTA also provides for labor and environmental
cooperation among member countries. The pact contains provisions
for the inclusion of additional member nations. Labor representatives
have criticized NAFTA, claiming the agreement has led to numerous
jobs lost in the United States because industries have moved plants
to Mexico (see maquiladoras ); NAFTA proponents point to the U.S.
jobs created because of increased imports by Mexico and Canada.
The agreement has negatively affected the economies of several
Caribbean countries whose exports to the United States now compete
with duty-free Mexican exports.