Unfortunately, Mexico’s NAFTA
experience has suffered from some of the promises its supporters had made, that
the pact would bring rapid growth, a rise in wages, and a reduction in emigration.
According to the online article, NAFTA’s
“Between 1993 and 2013, Mexico’s
economy grew at an average rate of just 1.3 percent a year during a period when
Latin America was undergoing a major expansion.
Poverty remains at the same levels as in 1994. And the expected “wage
convergence” between U.S. and Mexican wages didn’t happen, with Mexico’s
per capita income rising at an annual average of just 1.2 percent in
that period—far slower than Latin American countries such as Brazil, Chile, and
This alone is enough to make many
wonder where Mexico’s economic standing would be today had it not joined NAFTA.
It is extremely alarming to see the continual wage decline in Mexico’s
manufacturing sector once it joined the free trade agreement.