The Clinton administration negotiated an environmental agreement with Canada and Mexico, the North American Environmental Cooperation Agreement (NAAEC), which led to the creation of the Commission for Environmental Cooperation (CEC) in 1994. In order to allay concerns that nafta, the first regional trade agreement between a developing and two developed countries, would have negative effects on the environment, the Commission was tasked with carrying out an ex post-post environmental assessment it created one of the first ex-post frameworks for the environmental assessment of trade liberalization, which was to provide a certain amount of evidence regarding the initial assumptions concerning NAFTA and the environment. , such as the fear that NAFTA could create a “race to the bottom” of environmental regulation between the three countries or that NAFTA would put pressure on governments to strengthen their environmental protection.  The CEC organized four symposiums on assessing the impact of NAFTA on the environment and requested 47 contributions from leading independent experts on the subject.  A fourth round of talks included a U.S. request for a sunset clause that would terminate the agreement in five years unless the three countries agreed to maintain it, a provision that would allow U.S. Commerce Secretary Wilbur Ross to terminate the agreement if it did not work. Canadian Prime Minister Justin Trudeau met with the House Ways and Means Committee because Congress would have to pass legislation that re-releases the treaty provisions if Trump tries to pull out of the pact.  NAFTA has not eliminated regulatory requirements for companies wishing to act internationally, such as rules of origin and documentation obligations, that determine whether certain products can be traded under NAFTA. The free trade agreement also provides for administrative, civil and criminal sanctions for companies that violate the laws or customs procedures of the three countries. Fourth, NAFTA has put in place trade dispute resolution procedures.
The parties would begin a formal discussion, followed by a discussion at a meeting of the Free Trade Committee, if necessary. If the disagreement has not been resolved, a panel has considered the dispute.