n January of 1994 Canada teamed up with Mexico and the United States and launched the North American Free Trade Agreement (NAFTA), creating the world's largest free trade zone. It includes control over the regulation of investment, services, intellectual property, and competition. (1) Some Canadians look at NAFTA (in particular, free trade with Mexico), and see declining wages, lost jobs, and a deteriorating economy. Canadians were deeply divided over the agreement. Some stated that the deal would erode Canada's health-care system and income maintenance systems, and endanger Canadian industries. Others claimed that Canada's productivity and living standards would improve, that trade disputes would be depoliticized and border risk for Canadian export would virtually disappear. (2) Since NAFTA has been in effect Canadians have seen the benefits that free trade has created for workers and their families, through an increase in jobs and overall growth in the economy.
NAFTA replaced the existing CUFTA (Canada United States Free Trade Agreement). CUFTA negotiations began in 1986, the agreement was signed January 1, 1988 and came into effect one year later, on January 1 1989. (Campbell et al., 1999) Negotiations continued and NAFTA was signed on December 17,1992, but only took effect on January 1, 1994. (Campbell et al, 1999) The key goal of NAFTA was to remove tariffs on all goods and services between Canada the U.S and Mexico. .
When NAFTA was first introduced to Canadians its goals were to improve economic stability, lower prices and improve quality products, initiate stronger health and safety standards, and create free trade resulting in greater choices in goods and services. (2) It was designed to increase trade and investment among the three countries. NAFTA contains an elaborate schedule for tariff elimination, and reduction of non-tariff barriers. (1) These include control over the regulation of investment, services, intellectual property, and competition.