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Outlines the underlying rationale for the North American Free Trade Agreement (NAFTA) between Canada, Mexico and the USA; and evaluates its impact from 1987 to 2000. Examines statistics on trade between the three countries and discusses changes in trade patterns and growth rates, providing a breakdown of US exports by state and industry. Shows an improved pattern and volume of trade, considers the impact on employment and admits that assessment of NAFTA’s costs and benefits is difficult. Sees Mexico as its main beneficiary so far, but predicts that this will change in the long run.

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