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Why did some critics believe NAFTA could limit local governments?

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Critics of the North American Free Trade Agreement (NAFTA) expressed concern that the treaty’s overarching rules could undermine the authority of local governments. Specifically, opponents argued that these regulations could prevent local jurisdictions from issuing laws or policies intended to protect the public interest.1

Furthermore, critics feared that the agreement would facilitate the privatization and deregulation of essential public services, potentially limiting the ability of local governments to maintain control over these sectors. These concerns were rooted in the broader view that NAFTA functioned as an experiment designed to benefit multinational corporations at the expense of ordinary citizens and local governance.1