ABSTRACT
Canada, Mexico, and the United States have reached a critical juncture in their economic and security relations. As a result of the Canada-United States Free Trade Agreement (CUSFTA) in 1989 and the North American Free Trade Agreement (NAFTA) in 1994, the three countries have seen their trade and investment relations undergo an exponential growth. With trade flows between Canada and the U.S. reaching $411 billion, and between Mexico and the U.S. reaching $263 billion in 2000, the two neighbors have consolidated their position not only as the first and second most important U.S. trading partners, but also as the leading foreign export markets for many U.S. states. 2 They also rank among the most important recipients of direct U.S. foreign investment.
