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The North American Free Trade Agreement, or NAFTA, was implemented on 1 January 1994. It not only allows tariff-free trade among the three North American countries, Mexico, the United States, and Canada, but also simplifies procedures for obtaining limited duration work permits. Given that all three countries are major trading partners, the simplification of trade, tariffs, and labour relationships has made doing business easier and reduced the cost of many products for consumers. There have been two bad effects. First, many U.S. companies have moved production to Mexico to escape stricter U.S. environmental and labour safety regulations, something bad for the environment and workers overall. Second, the export of jobs to a lower wage country may contribute to unemployment among U.S. and Canadian young workers who lack university qualifications.
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