Abstract

CABRERA, Sergio. Mexican Reforms and NAFTA. Prob. Des [online]. 2015, vol.46, n.180, pp.77-101. ISSN 0301-7036.

The North American Free Trade Agreement (NAFTA) was meant to spur growth, improve income distribution and allow Mexican society to regain the purchasing power it had lost since the 1970s. These objectives have also been used to push through other economic agreements. However, these strategies have not yielded their promised fruit. Instead, the mechanisms and ways in which these agreements have been implemented have caused the economy to contract and purchasing power to fall, while simultaneously increasing income and wealth concentration. The reforms that Mexico began to impose in 2012 are aligned with NAFTA objectives, and their mechanisms and implementation threaten to further aggravate the losses of the past 20 years. In conclusion, NAFTA and these reforms fundamentally drive economic liberalization and reduce the role of the State in social affairs.

Keywords : Free trade agreement; economic liberalization; economic reforms; social deterioration; State interventio.