Neoliberal reforms and nafta in Mexico

Mexico signed in 1993, with the us and Canada, the North American Free Trade Agreement (nafta) which entered into operation in January 1994. In all these years, there have been a few formal assessments of nafta, from the Mexican side. Even fewer convincing answers for basic questions regarding why the governments of the us and Mexico signed such an agreement at that time.

In this paper we evaluate the performance of the opening of the economy and nafta, as a growth strategy, in three main economic variables: Gross Domestic Product, Exports and Employment. Also, we propose answers for the two political economy questions mentioned above.

Using hard data, we prove that neoliberal reforms that started in 1982, of which nafta is one of prime political importance, have failed completely in promoting economic growth and employment and that the benefits of growing exports have accrued mostly to private us firms.