Canada's Environmental Review of the North American Free Trade Agreement

Abstract

The North American Free Trade Agreement (NAFTA) was the first trade agreement and the first major government initiative to undergo an environmental review, as required by Canada's Green Plan. The environmental review analyzed the potential environmental effects of Canada's participation in NAFTA, setting precedents that will influence how environmental concerns are addressed in future international trade negotiations. Canada's review is composed of four broad elements: a study of the implications of the NAFTA's trade‐related environmental provisions, a screening of the potential environmental impact of increased trade on Canada, an appraisal of the possibility that investment might migrate to areas characterized by different environmental practices, and an examination of mechanisms to ensure that the relationship between trade and the environment will continue to be addressed during the implementation of the agreement. The review committee concluded that NAFTA should not have a significant effect on Canada's environment.