NAFTA and the Mexican Economy: Analytical Issues and Lessons for the FTAA

Jul 2001
This paper briefly discusses some of the issues that must be grappled with when analyzing the impact that the North American Free Trade Agreement (NAFTA) has had -and will have in the future- on the Mexican economy. Although discussion concentrates on the evolution of Mexico's economy and economic policy-making, some thoughts are also provided on the way in which the agreement has shaped some of the country's institutions, on the premise that its institutional implications may have important economic consequences. The paper is motivated, among other reasons, by the lessons for other developing countries in the hemisphere that one may extract by looking to the Mexican experience, in light of ongoing negotiations toward a Free Trade Area of the Americas (FTAA).