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The North American Free Trade Agreement (NAFTA) is legislation between Canada, The United States and Mexico which regulates trade in these regions. There are many benefits that have been incurred by the implementation of this agreement such as a reduction in pollutants and the protection of copyright materials across borders. It also removed significant taxation for products being imported and exported across North America. It also contains legislation which regulates work conditions for laborers across this portion of the continent. It is an effective document which puts into place a basic foundation for the market to adhere to in these three countries.
Removing taxes from product import and export between these countries allows for more effective trade between them. This increases production and revenue for all parties and expedites trade as well. There are also drawbacks to this as small businesses can find it difficult to compete with low prices offered by large companies across borders. While there are many advantages to this agreement some regions feel a heavy negative impact on their ability to grow as entrepreneurs. If you are interested in learning more about the North American Free Trade Agreement (NAFTA) try clicking the links to the left for further information.