An expected consequence of the implementation of the North American Free Trade Agreement was lower incomes of the Mexicans would allow them to import fewer U. S. and Canadian goods, thereby decreasing demand. low-skilled jobs would be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada. some U. S. and Canadian firms would move production to Mexico to take advantage of lower labor costs. increased imports from Mexico would help reduce the huge trade deficit for United States and Canada. a large number of Mexican firms would hire low-skilled workers from the United States.