THE NORTH AMERICAN FREE TRADE AGREEMENT: A QUALIFIED FAILURE FOR MEXICO – ANALYSIS
After Mexico’s 1982 economic crisis, the country abandoned its previous enthusiastically embraced Import Substitution Industrialization (ISI) development strategy, inspired by the Economic Commission for Latin American and the Caribbean (ECLAC) of the United Nations.[1] Since then, the Mexican economy has seen pounded by incredible surges of transformations.[2] Free trade agreements, massive privatization, and financialization have become new pillars of the economy, and have led to a complete reconfiguration of the country.[3] However, twenty years after the ratification of the North American Free Trade Agreement (NAFTA), the positive outcomes of this economic model adjustment have been little, and the expected economic boom never occurred.[4] In fact, poverty and inequality increased during the 1980s and the 1990s, and remains widespread.[5] NAFTA has predominantly benefited the U.S. and Canada: Mexico’s two main trading partners. Mexican authorities might now consider renegotiating NAFTA, and promote an alternative economic development policy, in order to overcome their persistent dependency on the U.S. economy, as well as improve their numerous deficiencies in various economic sectors.
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