ico City economist. The opening up of Mexico had occurred before NAFTA. NAFTA is the consolidation of that opening up and what it really represents is the locking in of trade liberalization for Mexico. Some analysts say NAFTA can be judged in part by examining what would have happened without the trade agreement. For example, trade disputes have continued to erupt, but NAFTA provides a forum for hearings and resolution. For now, the fairest statement about NAFTA may be that neither the critics worst fears nor the supporters rosiest forecasts has materialized. Nonetheless, many analysts agree that NAFTA has made a mark. U.S.-Mexico trade continues to grow, and NAFTA and the promises it brings have lessened the impact of the Mexican recession and quickened its recovery. Healthy, growing bilateral trade, they say, depends on healthy, growing economies, and Mexicos recovery and continuing economic liberalization should fuel that trend. NAFTA is a comprehensive agreement designed to improve virtually all aspects of trade between the three partners. NAFTA eliminates tariffs completely over several years and removes many nontariff barriers like quotas. Many tariffs ended the day NAFTA took effect: They affected half of all U.S. exports to Mexico, such as semiconductors and computers, telecommunications and electronic equipment and medical devices. Tariffs on other products fall over a longer period of time. For example, U.S. automotive parts entering Mexico see a 75 percent reduction in duties over the first five years of NAFTA, with the rest phased out over 10 years. About half the agricultural products traded between the two countries had tariffs cut immediately, but "import sensitive" items such as corn and beans for Mexico and orange juice and sugar for the United States phase out over 15 years. Critics and fans From the beginning, critics have said NAFTA benefits Mexican more than U.S. interests, lures U.S. jobs away to lower-paying wag...
