When the North American Free Trade Agreement was adopted, it was predicted that labor-intensive, import-competing businesses in the U.S. would likely lose from tariffs that were eliminated on competing imports from Mexico.

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The North American Free Trade Agreement (NAFTA) aimed to eliminate barriers to trade and investment between the U.S., Canada, and Mexico. This included the elimination of tariffs on competing imports, which was expected to negatively impact labor-intensive, import-competing businesses in the U.S. because they would face increased competition from lower-cost Mexican products.

When the North American Free Trade Agreement Was Adopted, It