Canada's goals in the negotiation of NAFTA were very simple. They wanted to improve their access for their goods and services to Mexico and the United States. Canada wanted to guarantee their position as a prime location for investors seeking to serve a

NAFTA has had a positive impact on the level of U.S. exports to Canada and Mexico. According to Table 1 it clearly shows an increase in exports from the United States to both Canada and Mexico. By eliminating the tariffs in these countries, it has allowed Mexico and Canada the ability to trade more efficiently and cost effective. U.S. exports of bulk, intermediate, and consumer-oriented products to Canada set records in 2000, with new value highs for vegetable oils, planting seeds, snack foods, breakfast cereals, poultry meat, dairy products, fresh and processed vegetables and fruits and their juices. U.S. products generally accounted for less than 60 percent of total Canadian agricultural imports. U.S. products now make up around two-thirds of total import value, as the U.S. share has trended upward at the expense of other suppliers because of lower tariffs and preferential U.S. access.

Overall, NAFTA has proven to be beneficial to the economies of Canada, Mexico, and the United States. The success of NAFTA has opened the possibility for the Free Trade Agreements of the Americas or FTAA which would include 34 different countries and make both North and South America a free trade zone. It would be the largest trade agreement of its kind. It is scheduled to be approved by January 2005. This proves that free trade is beneficial to all parties involved.

ll of North America. NAFTA realized these objectives set by Canada and supplied Canada with a new and sharper edge to their international competitiveness. The agreement also set a path for widening Canada’s trade horizons, while also giving them a bigger stage on which to demonstrate their economic expertise and leadership. A major advantage for Canada was the reduction of Mexican barriers, which provided new markets and opportunities for Canadian goods and services. Canadian firms have now been able to participate in, and expand sales in sectors that were previously highly restricted, such as autos, financial services, trucking, energy and fisheries. The Mexican tariffs and import licensing requirements that were eliminat!

There are several major benefits to Mexico from NAFTA. The movement of companies to Mexico has had some positive long term effects on environmental and human rights. With all the new expansion to Mexico, this has helped to stabilize the Mexican economy. Several Canadian and American businesses have relocated across the Mexican border. Employment and environmental regulations are lacking in Mexico, but with a rapid expansion over the Mexican border helped stabilize and develop regulations. As a result, Mexico’s future labor and environmental problems have decreased. There are five important conditions stemming from NAFTA that have benefited Mexico. These conditions have increased the degree of Mexico's competitiveness. These five conditions are certainty of rule, economies of scale, economies of scope, wide choice of technologies, and

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