institutional investors believe rejection of NAFTA will be good for the economy , believing that the US , with its superior industrial productivity and products , will reap the most economic benefits in a more open trading environment . A reverse rejection would lead to greater protectionism and inflation and slower world economic growth . Inflation is the biggest concern because low inflation has kept bond yields low and boosted shares to record prices . A reverse trend could undermine vulnerable equity markets . this would be bad for President investors , who has invested political capital in getting NAFTA through Congress . The timing of the vote is too close to call .
US investors believe passage of NAFTA will be good for the economy, reasoning that the US, with its superior industrial productivity and products, will reap the most economic benefits in a more open trading environment. A NAFTA rejection would lead to greater protectionism and inflation and slower world economic growth. Inflation is the biggest concern because low inflation has kept bond yields low and boosted shares to record highs. A reverse trend could undermine vulnerable equity markets. Defeat would be bad for President Clinton, who has invested political capital in getting NAFTA through Congress. The outcome of the vote is too close to call.