Despite the inclusion of the above provisions, some in Congress remained concerned that NAFTA's effect on environmental lawscould be unpredictable. In October 1993, the United States and Mexico agreed to a new institutional structure to promote borderenvironmental cleanup. TheBorder Environmental Cooperation Agreement authorized the establishment of the North American Development Bank (NADB) andthe Border Environment Cooperation Commission (BECC) to assist bordercommunities in financing environmental infrastructureprojects. The NADB is authorized to make only market-rate loans, however, and this hasbeen a major obstacleto the Bank's ability to finance projects in low-income border communities. 254 ( P.L.108-215 ),enacted in April 2004, authorizes several operational reforms to the NADB. Assessing NAFTA's Environmental Impacts

The NAFTA Implementation Act directed the President to report to Congress in 1997 on the effects of NAFTA and implementationof the side agreements. Congressional Activity and Issues

In the 107th Congress, the environment-related provisions of NAFTA and its side accord received attention during consideration oftrade promotion authority legislation and the U.S.-Jordan Free Trade Agreement (FTA); both adapted environmentalprovisions fromthe NAAEC and NAFTA. In the 108th Congress, efforts to reform the BECC and NADB continued, and in April 2004, the President signed into law P.L.108-215 ( H.R. The U.S.-Central America FTA (CAFTA), which the President has signed but which requiresimplementing legislation,includes similar provisions and also adapts the NAAEC provisions that allow citizens to file submissions concerninga party's failureto effectively enforce its environmental laws.
The North American Free Trade Agreement (NAFTA) includes severalenvironment-related provisions, that while limited, were unprecedented for their inclusion in a trade agreement. However, furtherenvironmental (and labor) assurances were needed to secure passage of NAFTA, and ultimately, the negotiatingparties agreed to aside accord that promotes cooperation on environmental matters and includes provisions to address a party's failureto enforceenvironmental laws. Additionally, the United States and Mexico entered into the Border EnvironmentalCooperation Agreement(BECA), which authorized the establishment of the Border Environment Cooperation Commission (BECC) and theNorth AmericanDevelopment Bank (NADB) to help border communities finance environmental infrastructure projects.
In the 108th Congress, NAFTA's environmental provisions and related institutions have continuedto receive attention. A key issuehas concerned the effectiveness of the NADB and the BECC, and especially the Bank's ability to finance projects.Enacted on April5, 2004, P.L. 108-215 (H.R. 254) authorizes several operational reforms to the NADB. Other issues involvetheenvironmental impact of NAFTA, and the effect that NAFTA and its environmental side agreement have had onthe negotiation ofother U.S. trade agreements, including the U.S.-Central America Free Trade Agreement (CAFTA) and U.S.-ChileFTA. This reportbriefly reviews NAFTA's environmental provisions, associated agreements, and related issues and congressionalactions. It will beupdated.