Lastly The North American Free Trade Agreement affected business. It has made things better for young businesses in Canada to expand to a different society. NAFTA promotes trade in goods and service in other countries. This is why NAFTA let the cross-border movements to occur in North America. In Chapter 16 of NAFTA agreement charter it allows the cross-border movement of business persons who are citizens of member countries to NAFTA. It does not change a citizen’s country immigration requirements about public health, safety and national security. It means that under NAFTA these business workers are allowed a temporary entry into a North American Country. They are business visitors, professionals, intra-company transferees, traders, investors, and family members, without a VISA, or legal permit (Internet 1). The agreement allows business people to stay in certain business activities without an employment authorization. The main reason for this is to let short-term business visitors, who have no intention entering there foreign labor market, come in there country. If an American or Mexican citizen want to enter Canada to trade goods, provide services, or participate in investment activities they are eligible for entry to Canada under NAFTA.

NAFTA had a rollercoaster affect on the employment rates in the country. NAFTA earned 0.1 % in GDP, and after 1996 produced many more jobs. Due to the high amount of investment in Canada, money was still coming in and the dollar was a steady price. During the late 1980s and early 1990s 40% of Canadian families’ income fell 4.5%, and only 20% of the Canadians increased 6.6% on average (Internet 5). This was due to many plant closures and layoff. Canada was losing jobs to there partner south of the United States border; Mexico. This era has been known as the lowest economic growth since The Great Depression. Leading economist Pierre Fortin has characterized this period as "the great Canadian slump" — the longest period of below potential growth since the Great Depression (Internet 5). NAFTA has caused a loss of 276, 000 jobs in manufacturing. In food manufacturing, a decrease of 33, 000 jobs occurred, in clothing 36, 000 jobs, in primary metal 23, 000 jobs, in Fabricated Metal Products 19, 000 jobs, in Electrical & Electrical Products 40, 000 jobs, and in Transportation Equipment 1,000 jobs (Internet 3). The only increase was in Machinery (Non Electrical) with 6,000 jobs. It was evident that lots of manufacturing industries were being confiscated from Canada to Mexico, for lower deals in money. Since Mexico had a significant increase in employment, the trading increased from $2.9 billion to $4.3 billion dollars (Hollweck, 1). The employees in Canada could not keep up with inflation and wages which were much slower to gain compared to the huge increase in Mexico’s workers productivity. Most of the manufacturing was leaving Canada and The United States towards Mexico. The average hourly compensation for a Canadian manufacturing job was approximately $18.74 per hour, and the average wage in Mexico was $1.51 per hour (Internet 2). They were willing to work at low cost in Mexico where environmental laws are rarely enforced. Low-skill, low-tech jobs, and mid-range manufacturing were opportunities found in the south, and accounted to 15% loss of Canadian manufacturing jobs. Canada manufacturing declined from 19.2% in 1988 (GDP) to 17.3% in 1996. In the 1990s the computer, health and medical sector, and telecommunication grew at 30 % a year (Internet 1).

In 1991 Canada imported $2.6 billion and exported $543 million. Trade with Mexico in 1997 increased to $5.95 billion dollars, making Canada the second biggest trader with Mexico. Besides the United States, Mexico in return wanted capital goods, technology, and investment. These were areas Canada was all well known for. Most of Canadian business in Mexico was focused on agriculture-food products, transport equipment, pet

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