Nafta Impact

A Success Story

By: Mexico Ministry of Economy

Global markets by means of exports, industry diversification and production-sharing are some of the ways to enhance job opportunities in the domestic labor markets. International trade is the link that makes this possible. It contributes to the creation of more and better-paying jobs, and promotes investment in human capital.

     Trade contributes to economic growth, and economic growth benefits workers by creating more job opportunities and thus enhancing the standard of living. Mexico’s economy has been growing steadily over the last decade, and this trend is to a great extent due to the country’s export performance. As a consequence, higher employment levels have been observed for each consecutive year.

     Since NAFTA entered into force, Mexico has grown on average at a stable real rate of 3.1 percent. In 2000, real GDP growth reached 7 percent, positioning Mexico as the fourth-fastest growing economy among the 30 largest economies in the world and the fastest in Latin America.

     Export activity today represents 33 percent of the Mexican GDP and contributes to more than half of its real growth. Higher employment levels have gone in hand with Mexico’s export performance. Since 1995, unemployment has shown a...

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