Accession Number : ADA490094


Title :   NAFTA and the Mexican Economy


Descriptive Note : Congressional rept.


Corporate Author : LIBRARY OF CONGRESS WASHINGTON DC CONGRESSIONAL RESEARCH SERVICE


Personal Author(s) : Villarreal, M A ; Cid, Marisabel


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a490094.pdf


Report Date : 04 Nov 2008


Pagination or Media Count : 24


Abstract : The North American Free Trade Agreement (NAFTA), in effect since January 1994, plays a very strong role in the bilateral economic relationship between Mexico and the United States. The two countries are also closely tied in areas not directly related to trade and investment such as security, environmental, migration, and health issues. The effects of NAFTA on Mexico and the state of the Mexican economy have important impacts on U.S. economic and political interests. As NAFTA approaches its 15th anniversary, a number of policymakers have raised the issue of revisiting NAFTA and renegotiating parts of the agreement. Some important factors in evaluating NAFTA include the effects of the agreement on Mexico and how these relate to U.S.-Mexico economic relations. In the 110th Congress, major issues of concern have been related mostly to economic conditions in Mexico, the effect of NAFTA on the United States and Mexico, and Mexican migrant workers in the United States. In 1990, then Mexican President Carlos Salinas de Gortari approached the United States with the idea of forming a free trade agreement (FTA). Mexico's main motivation in pursuing an FTA with the United States was to stabilize the Mexican economy by attracting foreign direct investment. The Mexican economy had experienced many difficulties throughout most of the 1980s with a significant deepening of poverty. The intention of Mexico in entering NAFTA was to increase export diversification by attracting foreign direct investment (FDI), which would help create jobs, increase wage rates, and reduce poverty. At the time that NAFTA went into effect, the expectation among supporters was that the agreement would improve investor confidence in Mexico, attract investment, and narrow the income differentials between Mexico and the United States and Canada.


Descriptors :   *SALARIES , *INTERNATIONAL RELATIONS , *INTERNATIONAL TRADE , *MEXICO , *ECONOMICS , INCOME , AGREEMENTS , HEALTH , NEGOTIATIONS , INVESTMENTS , UNITED STATES GOVERNMENT , POLICIES


Subject Categories : Economics and Cost Analysis
      Government and Political Science


Distribution Statement : APPROVED FOR PUBLIC RELEASE