The North American Free Trade Agreement (NAFTA) will stimulate economic growth and make the three country region (Canada-Mexico-the United States) more competitive globally. Textile products must be made from yarn, fabric, and apparel manufactured in the three country region to receive preferential treatment under provisions of the agreement. Between 1989 and 1991, U.S. textile exports to Canada grew 80 percent while imports grew 9 percent. This resulted in a gain in the U.S. trade balance of almost 130 million rawfiber-equivalent pounds, and raised the surplus with Canada to more than 330 million pounds annually. Exports to Mexico grew 44 percent while imports grew 19 percent. The resulting U.S. net textile trade balance with Mexico grew from a deficit of 15 million raw-fiber-equivalent pounds to a surplus of 25 million pounds.