Since NAFTA was passed ten years ago, traffic at U.S. borders with both Canada and Mexico has increased significantly. Although NAFTA's drafters had anticipated certain environmental concerns after the Act's passage and created the Commission for Environmental Cooperation (CEC) as a result, the Act's drafters had not anticipated the problems resulting from transportation. The increased transportation has led to a significant increase in respiratory illnesses in children along the border ("Three Nation Panel" A1). An additional problem has been the construction in Mexicali of two power plants that emit pollutants into California but which are not subject to U.S. pollution legislation. As a result, U.S. and Mexican state and federal environmental officials have been working together to harmonize U.S. and Mex

In addition to disagreements between countries, disagreements under NAFTA can also arise between corporations headquartered in one country and the government of another country. The case of Canada's Loewen Group is an example. In that case, the Loewen Group had been sued by the O'Keefe family of Mississippi (Liptak 1). The O'Keefe's alleged that Loewen had not lived up to its obligations in a deal involving the purchase of funeral homes. The O'Keefe's sued Loewen for breach of contract and fraud. The Mississippi jury awarded the family $500 million even though an independent tribunal had valued the business under consideration at less than $8 million (Liptak 1).

ican pollution controls across the border ("Three Nation Panel" A1).

"Three_Nation Panel's New Study Finds Border Pollution to Be Byproduct of NAFTA." San Diego Union_Tribune (June 18, 2004): <"http://www.layover.com/cgi_bin/portal/printnews.pl/7104.html">.

"North American Free Trade Agre