Mexico in NAFTA: Integration, dependency, and economic subordination
Bizberg, Ilán
Mexico in NAFTA: Integration, dependency, and economic subordination - 2015.
64
While the Mexican economy was already closely tied to that of the United States before NAFTA, this agreement has increased its dependency. The complementary relationship between the two countries is asymmetrical. The agreement has accelerated the formation of a regional entity based on a common economic structure, the circulation of migrants, and the remittances they send home, as well as on drug trafficking. While NAFTA has allowed Mexico to become a major exporter of manufactured goods, and while its surplus with the United States has grown continually, its deficit with the rest of the world is growing. While the production chains of products exported to the United States are integrated, this is not the case for products imported from the rest of the world. The indiscriminate openness of the Mexican economy has caused the destruction of entire sectors of industry. The structural deficit of the trade balance implies strong dependency on foreign capital, even of a short-term and speculative sort. A deliberate low-wage policy assures a feeble internal market.
Mexico in NAFTA: Integration, dependency, and economic subordination - 2015.
64
While the Mexican economy was already closely tied to that of the United States before NAFTA, this agreement has increased its dependency. The complementary relationship between the two countries is asymmetrical. The agreement has accelerated the formation of a regional entity based on a common economic structure, the circulation of migrants, and the remittances they send home, as well as on drug trafficking. While NAFTA has allowed Mexico to become a major exporter of manufactured goods, and while its surplus with the United States has grown continually, its deficit with the rest of the world is growing. While the production chains of products exported to the United States are integrated, this is not the case for products imported from the rest of the world. The indiscriminate openness of the Mexican economy has caused the destruction of entire sectors of industry. The structural deficit of the trade balance implies strong dependency on foreign capital, even of a short-term and speculative sort. A deliberate low-wage policy assures a feeble internal market.
Réseaux sociaux