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NAFTA is a trade agreement between Canada, Mexico and the United States, which entered into force January 1, 1994. NAFTA has side accords (separate non-trade agreements) on labour and the environment, without which it is doubtful the U.S. would have accepted the Agreement.
The environmental agreement created the Commission for Environmental Cooperation, which promotes environmental cooperation among the three countries, and by which dispute settlement provisions can be invoked if a country persistently fails to enforce environmental laws that have conferred a trade benefit. Note that the CEC itself does not set standards in the various countries, though part of its mandate is to help harmonize them upward. Rather, its role in such disputes is to see that enforcement of existing laws takes place. It is also charged with, among other things, monitoring the environmental effects of NAFTA.
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