MEXICAN MANUFACTURING SECTOR

CHAPTER 1

INTRODUCTION

When NAFTA implementation began nine years ago, it created the world’s largest free trade area, which now links 406 million people producing more than US$11 trillion worth of goods and services. The dismantling of trade barriers and the opening of markets has led to economic growth and rising prosperity in all three countries.

These effects should be greatest in Mexico, the least developed of the three.

This report reflects a perspective of NAFTA, the recent developments in the Mexican manufacturing sector, and analysis of the business situation in Mexico pre and post NAFTA in the manufacturing sector.


CHAPTER 2

NAFTA

NAFTA, the North American Free Trade Agreement is a trilateral trade agreement between Canada, the USA and Mexico allowing the free flow of products and services between countries. Mexico became a signatory to the agreement in 1994.

According to Article 102 of the NAFTA, the objectives of this Agreement, as elaborat...