Trade

  • Mexico wanted to assert its nationalism, which the United States repeatedly dismissed for more than a century before Mexico turned its attention to post-World War II trade policy. Thus, in terms of its desired political relations with the United States, the Import Substitution Industrialization (ISI) policy suited Mexico.
  • The financial crisis of 1982 provided an opportunity to re-evaluate and change economic policies that had become dated in the eyes of most Mexican economists. During this time policy emphasis was put on looking outward, promoting exports, and giving more emphasis to the private sector and the market.
  • The workings of the North American Free Trade Agreement (NAFTA), which has been in effect since January 1, 1994, was an effort by the two presiding presidents to close some of the psychological distance that had long prevailed in the interactions between the two countries. NAFTA has had some success in this effort: relations between businesspeople became closer; consultations between officials of the two governments became much less formal; and cross-border nongovernmental organizations now cooperate more closely than before to accomplish their objectives in the two countries. Yet, it is telling that public opinion in each country believes that most of the economic benefit from NAFTA goes to the other country.