Environmental Issues and the North American Free Trade Agreement

The House Small Business Subcommittee heard testimony from administration officials and representatives of environmental groups on the impact of the North American Free Trade Agreement on the North American environment. The proposed North American Free Trade Agreement, among other objectives, lowered tariffs between the U.S., Canada, and Mexico, had created speculation that American industries may have been motivated to relocate plants in Mexico because of lower employee wages and reduced worker and environmental regulations. Representatives of environmental groups discussed evidence of loose enforcement of environmental regulations on factories in Mexico and further discussed the need for specific language in the North American Free Trade Agreement holding companies to specific environmental guidelines. close