Mexico's evolution in the North American Free Trade Agreement (NAFTA)

Abstract

The purpose of this paper is to inform the academic public, mainly, that the signing of treaties or trade agreements are not a guarantee that the signatory countries will improve the living conditions of their inhabitants, and this, from our point of view, makes us assume that Mexico did not negotiate an agreement that will raise the standard of living of most Mexicans, since the signing of a trade agreement implies completely opening the doors to other countries that will compete vigorously with local companies, causing greater social and economic inequalities, especially if the local industry is not prepared and is not competitive. To carry out this work we have analyzed some relevant indicators that allow us to know the reality of the countries that integrate the North American Free Trade Agreement, signed on December 17, 1992 and that came into effect on January 1, 1994; that is, 10 years have passed and we have information that allows us to study the economic development of this commercial block and to know the economic reality that our country presents, by studying indicators such as gross domestic product (gdp), inflation, productivity, employment, current account, foreign direct investment and foreign debt. The study of these indicators will help us to know the reality that our country is living, even though some of them show the general part with the rest of the world and not the particular part of Mexico's commercial relationship with Canada and the United States.