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NAFTA in Mexico: What Worked? And What Did Not?


Affiliations
1 Economics Major, Department of Economics, Metropolitan State University of Denver, Campus Box 77, P. O. Box 173362, Denver, CO 80217-3362, United States
2 Distinguished Professor of Economics, Chief Editor, International Review of Business and Economics, (www.irbejournal.com), Campus Box 77, P. O. Box 173362, College of Business, Metropolitan State University of Denver, Denver, CO 80217-3362, United States
 

Mexico joined the General Agreement on Tariffs and Trade in 1986 and less than a decade later joined the North American Free Trade Agreement (NAFTA) with the United States and Canada in 1994. Before these trade liberalizing moves, Mexico had hit a few bumps in the road when it came to stimulating economic growth. Unfortunately, the post NAFTA world and especially the COVID-19 world have only left more bruises on Mexico’s economy. Most economists will agree that the Mexican economy is currently in struggling shape and that some positive effects of NAFTA did not help. The purpose of this paper is to point out the small handful of economic aspects from NAFTA that had a positive effect on Mexican Trade and the Mexican economy. After explaining each aspect of what worked and why it did not last, we will conclude with what we can learn from this and what can be changed looking forward.

Keywords

Free Trade, NAFTA Effects, Mexican Economy, Trade Agreements.
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  • NAFTA in Mexico: What Worked? And What Did Not?

Abstract Views: 267  |  PDF Views: 120

Authors

Dan Meylor
Economics Major, Department of Economics, Metropolitan State University of Denver, Campus Box 77, P. O. Box 173362, Denver, CO 80217-3362, United States
Kishore G. Kulkarni
Distinguished Professor of Economics, Chief Editor, International Review of Business and Economics, (www.irbejournal.com), Campus Box 77, P. O. Box 173362, College of Business, Metropolitan State University of Denver, Denver, CO 80217-3362, United States

Abstract


Mexico joined the General Agreement on Tariffs and Trade in 1986 and less than a decade later joined the North American Free Trade Agreement (NAFTA) with the United States and Canada in 1994. Before these trade liberalizing moves, Mexico had hit a few bumps in the road when it came to stimulating economic growth. Unfortunately, the post NAFTA world and especially the COVID-19 world have only left more bruises on Mexico’s economy. Most economists will agree that the Mexican economy is currently in struggling shape and that some positive effects of NAFTA did not help. The purpose of this paper is to point out the small handful of economic aspects from NAFTA that had a positive effect on Mexican Trade and the Mexican economy. After explaining each aspect of what worked and why it did not last, we will conclude with what we can learn from this and what can be changed looking forward.

Keywords


Free Trade, NAFTA Effects, Mexican Economy, Trade Agreements.

References





DOI: https://doi.org/10.53739/samvad%2F2021%2Fv23%2F167188