Articles by: Mexican Labor News and Analysis

September 14, 2009

The North American Free Trade Agreement (NAFTA) has, to a significant extent, defined the relationship between the three North American nations over the last fifteen years. NAFTA was sold on the promise that it would bring more and better jobs and faster growth to the region and reduce emigration from Mexico to the United States and Canada. While trade and investment flows did increase, NAFTA did not create more net trade-related jobs and those that it did were very often less stable, with lower wages and fewer benefits. Instead, increased trade largely benefited the corporate elite in all three countries. Income inequality has also grown in the region. We believe that the trade liberalization and investors' rights provisions contained in NAFTA were important contributors to these results.