This article supports a theory that explains the advantages and disadvantages of NAFTA. Nowadays it has become a topic of debate. In this article we will discuss about the effect of NAFTA on Businesses of the United States, Canada, and Mexico. What is NAFTA, What are the advantages of NAFTA and what are the disadvantages of NAFTA, these point mainly are discussed in the following essay. This has become a topic of debate since 1994, when this agreement came into existence.