The Impact of NAFTA on the Automotive Industry in Mexico

Has NAFTA improved and enhanced the automotiveindustry in Mexico in terms of economic performance,labour conditions and what control does the Mexicanstate have over those developments? this is the mainquestion that this research try to answer. Itexplains that in some exogenous variables (eventhough there have been marked fluctuations speciallyin the period [2001-2004]), there are some importantpositive effects on the automotive industry sincethe agreement was implemented (regional trade hasincreased and production and exports in Mexicoincreased considerably from 1994 to 2000). Thisoutcome of NAFTA at the external level, however,contrasts markedly with the effects of the agreementin terms of labour conditions, wages, purchasingpower and implications on state autonomy.With the implementation of NAFTA the Mexicandependence on the U.S. automotive market has becomestronger, consequently the Mexican state has a muchmore restricted margin to regulate or implementpolicies in the sector, at least to the extent towhich it was before the signing of NAFTA.

Autorentext

The author holds a BA and an MA in International Relations by the National Autonomous University of Mexico (UNAM). He was awarded the Ford-Hewlett-MacArthur scholarship to study an MA and a PhD in Government at Essex University. He is currently working as a professor and Postgraduate Director at the Tecnologico de Monterrey Campus Puebla.