On January 1, 1989, the United States-Canada Free Trade Agreement was passed and put into power, freeing up trade between the two countries. By January 1, 1994, the North American Free Trade Agreement (NAFTA) was ratified and implemented, eliminating tax tariffs between the three regions of North America. The intent of this agreement was to increase the amount of jobs and economic opportunities with more trade and to improve the economies of Mexico, the United States and Canada. The enactment of NAFTA has sparked a political debate, and many people have wondered whether it is overall more beneficial or harmful to North America. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Many political benefits arise from NAFTA. Since tax tariffs were abolished, trade between the United States, Mexico and Canada has tripled, increasing economic output. Additionally, NAFTA directly created about 5.4 million jobs, and as trade boomed, the number rose to 17.7 million. Foreign direct investment (FDI) increased more than three times. The NAFTA Pros and Cons article states: “The United States increased foreign direct investment in Mexico from $15.2 billion in 1993 to $104.4 billion in 2012, and from $69.9 billion in Canada in 1993 to $352.9 billion in 2015. Mexico increased investment in the United States by 1283% over the same period, while Canada's foreign direct investment they increased by 911%”. Prices have fallen, to the benefit of consumers, and public spending, or supply, has also been supported. There has been increased competition, and due to the elimination of tariffs, oil, food, transportation and other costs have decreased. US GDP (gross domestic product) has also grown since 1992 thanks to NAFTA, meaning greater demand for imports from other regions. NAFTA has been criticized for having some major economic disadvantages. American jobs were destroyed and wages were suppressed. Many industries have moved their operations from the United States, where labor is very expensive, to Mexico, where labor is cheap. Most industries were manufacturing companies. Approximately, a total of 682,900 jobs moved from the United States to Mexico from 1994-2010. The trade deficit reached $97.2 billion. Industries that did not move to Mexico took advantage of the situation and used it as leverage against union organizing efforts. Workers did not have much business authority without union support and as a result wages were unable to grow. 64% to 71% of manufacturing industries have used this threat. NAFTA also had a huge effect on Mexico. Mexican farmers could not compete with the subsidized agricultural products that came from the United States, forcing 6.9 million farmers out of work by 2007. Maquiladora workers, low-cost Mexican labor that assembled products for the United States near at the border, they were exploited. They were stripped of their employment rights, could be forced to work more than 12 hours a day, and women were sometimes forced to take a pregnancy test before applying. Due to competitive pressure, Mexican businesses used more fertilizers and farmers expanded their land holdings. In Mexico, a total of $36 billion per year has been lost to pollution and 630,000 hectares per year have been lost.