The North American Free Trade Agreement (NAFTA) reduced trade restrictions among Mexico, the United States, and Canada. After NAFTA was implemented, trade among the three countries grew by 10 to 15 percent annually. NAFTA has been controversial in the United States, however. American labor groups fear the loss of jobs to generally lower-paid Mexican workers. Still, large numbers of U.S. companies have not yet moved to Mexico because certain production costs, such as electricity, are higher there. From Mexico’s viewpoint, NAFTA has helped boost exports and created thousands of new jobs.
According to the passage, which statement is true?