What has been the impact of NAFTA on trade and employment in NAFTA nations?
Answer: Trade and investment among the NAFTA members has increased significantly since the agreement was signed in 1994. The U.S. is the largest trade partner of Canada and Mexico, and both countries are among the most important exporters and importers for the U.S. Due to lower wages in Mexico, a lot of FDI has poured into Mexico, potentially displacing jobs in the United States. U.S. firms have come under criticism for taking advantage of cheaper wages and lax environmental standards. In addition, the agreement has not stopped the flow of illegal immigrants from Mexico to the U.S.