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Seven Myths About NAFTA and Mexico
Date: Friday, February 13 2004

Seven Myths About NAFTA and Three Lessons for Latin America

by Alejandro Nadal, Francisco Aguayo, and Marcos Chávez

As Latin America and the rest of the Western Hemisphere gathers in Miami for the Free Trade Area of the Americas (FTAA) Ministerial this week, its time to look at the reality behind the myths about the impact of NAFTA on Mexico:

1. The GDP growth rate in Mexico has remained stagnant since 1983. Nafta did not change that. Since Nafta was approved average per capita GDP growth has been 1%, which is similar to the slump of the 1930's, and much less than the 3.4% increases during the period of 1945-1980.

2. Mexico has a permanent trade deficit. The myth of Mexico as an export giant evaporates when we consider that, next to the surplus with the US, there is a booming trade deficit with Asia and Europe which increased by 600% and 400% respectively since 1994, when NAFTA was enacted.

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Seven Myths About NAFTA

Seven Myths About NAFTA

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