<P> The U.S. foreign direct investment (FDI) in NAFTA countries (stock) was $327.5 billion in 2009 (latest data available), up 8.8% from 2008 . The U.S. direct investment in NAFTA countries is in nonbank holding companies, and in the manufacturing, finance / insurance, and mining sectors . The foreign direct investment of Canada and Mexico in the United States (stock) was $237.2 billion in 2009 (the latest data available), up 16.5% from 2008 . </P> <P> The economic impacts of NAFTA on the U.S. economy have been modest . In a 2015 report, the Congressional Research Service summarized multiple studies as follows: "In reality, NAFTA did not cause the huge job losses feared by the critics or the large economic gains predicted by supporters . The net overall effect of NAFTA on the U.S. economy appears to have been relatively modest, primarily because trade with Canada and Mexico accounts for a small percentage of U.S. GDP . However, there were worker and firm adjustment costs as the three countries adjusted to more open trade and investment among their economies ." </P> <P> Many American small businesses depend on exporting their products to Canada or Mexico under NAFTA . According to the U.S. Trade Representative, this trade supports over 140,000 small - and medium - sized businesses in the US . </P> <P> According to the Economic Policy Institute, California, Texas, Michigan and other states with high concentrations of manufacturing jobs were most affected by job loss due to NAFTA . EPI economist Robert Scott estimates some 682,900 U.S. jobs have been "lost or displaced" as a result of the trade agreement . However, other studies have found that NAFTA only had a modest impact on manufacturing employment, and that automation explains 87% of the losses in manufacturing jobs . </P>

The north american free trade is an agreement among north american countries