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The NAFTA came into effect on January 1, 1994 and as of 2008, in terms of combined purchasing power parity, the three members are the largest trade bloc in the world.
NAFTA has had a positive effect on the economy of Mexico with decline in poverty rates and increase in real income. This was true even when the country was facing economic crisis in 1994-1995. However, critics believe that the North American Free Trade Agreement has only been beneficial to business owners and elite in the three countries while having negative impact on Mexican farmers who saw food prices fall based on cheap imports from the US. The US also had to face certain negative fallouts when workers in manufacturing and assembly industries lost their jobs.
Critics feel that NAFTA is responsible for contributing to the rising inequality in the US and Mexico. They believe that for Mexico to benefit more from this agreement, the country has to invest more money in education and promoting innovation in infrastructure and agriculture.
However, overall, NAFTA has not created any trade diversion besides from a few select industries like textiles and apparel, in which rules of origin negotiated in the agreement were specifically designed to make US firms prefer Mexican manufacturers. According to World Bank, the percentage growth of NAFTA imports was almost similar to the increase in non-NAFTA exports.
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North American Free Trade Agreement International Law
The reasons why governments intervene in international trade are usually to correct market failures or distortions, redistribution of income and non-economic objectives. 
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