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The Deficiencies in NAFTA: Canada, United States and Mexico This paper looks into the ongoing restrictions and complications found in financial capital flows in the NAFTA area. It finds that the primary problem can be attributed to the relative underdevelopment of Mexico's economy and financial markets. While Canada is also disadvantaged by the agreement, cast in the dark shadow of the US, we have a much longer history of open trade with the US and the global economy at large. As a result, our financial markets are also much more developed. Mexico, in contrast, is like the Canada of the early 20th century: still struggling to achieve any meaningful degree of economic development and inherently more prone to keep its proverbial 'guard' up. To provide substance to this assertion, a brief background of the NAFTA agreement will be given followed by highlights of Mexican economic underdevelopment. Armed with this knowledge, an evaluation of the potential for more efficient financial markets in the NAFTA region will be provided. 13 pgs. 25 f/c. 10b. Pages: 13 Bibliography: 10 source(s) listed Filename: 1872 Deficiencies in NAFTA.doc Price: US$116.35

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