The Mexican Experience (1979-2005)

The Mexican Experience (1979-2005)

1. Protected trade (1970-1981)

   • Liberalism started to prevail in economic policy
   • Reduce government regulation
   • Reduce tariff and eliminate non- tariff barriers to trade
   • Commodities and oil exports
   • International debt crisis
     • Collapse of the oil boom

2. Unilateral free trade (1982-1993)

   • Structural change
     • Trade balance
   • Increase of manufacturing and maquiladora exports
   • Export at a competitive level
     • Import low cost, high quality, cheap local labor
   • No diversification trade
   • Increase of employment and reduction of inflation

3. Preferential trade (1994-2005)

   • Realization of NAFTA
   • Opening process of trade liberalization
   • Export boom in goods and services
   • More efficient
   • Decline in consumption and investment
   • Increase in employment associated with exports