tions. One result of these actions has been a reduction in the level of Canadian exports to the United States. Unfortunately, the resulting loss of jobs in Canada has dampened Canadian demand for American products. Therefore, to date, the Canadian United States Free Trade Agreement has had a relatively neutral impact on the American economy, while it has had a detrimental impact on the Canadian economy.
A free trade agreement with Mexico will permit American firms in large numbers to relocate their production facilities in Mexico to take advantage of lower costs of production primarily lower labor costs. The Bush Administration presented this effect as beneficial because it will lower prices for American
consumers. If large numbers of Americans lose their jobs in the process, however, the effect on the United States of free trade with Mexico will be similar to the effects on Canada of the Canada United States Free Trade Agreement. American firms will
gain to the extent that they are able to become more price co
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