Canada wanted to gain access for Canadian goods, service and capital to Mexico, as well as to resolve specific annoyances with the United States from the Free Trade Agreement (FTA), and lastly to ensure that Canada remained an attractive location for investors wishing to serve the whole market in North America. (Government, IV) Most of these objectives have been met so far. .
The economy of Canada changed vastly due to NAFTA. A closer relationship between the three countries was achieved in comparison to the rest of the world. Since the Free Trade Agreement, The United States had the largest foreign investment in Canada with 64%. By the end of 2000 $126 billion dollars was invested in Canada from the United States, an increase of $15 billion from 1984. (Government, III, and IV) This increase in investment came from a variety of things like petroleum, and transportation equipment to manufacturing industries. .
Another object that increased the flow of money coming into Canada was the Canadian dollar. It initially rose 4.1% from 1989 to 1991. "My suspicion is that the Canadian dollar was part of the (free trade) deal-, state Dickson.(Halberstadt, 9). From 1989 to 1994 Canada was able to keep a 2.25% short term interest rate above the US (Zahniser, V). The total market value of all the goods and services produced within the borders of a nation during a specified period is known as the Gross Domestic Product (GDP). In 1980-1988 the average GDP was: 3.2% and in unemployment rates 9.6%, in 1989-1996 the GDP decreased to 1.4 % and unemployment rates increased slightly to 9.7 % (Internet 5). Mainly Ontario and Quebec industries were being affected, more then the resourceful Western provinces. The GDP reached a high in 1994 and was the only year of growth above 2.4 % (Internet 1), (Micro, 6).
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.
