The United States Trade Pattern with Mexico

Essay by carameleyesUniversity, Bachelor's April 2005

download word file, 7 pages 5.0

During the 1980's Mexico pursued an assertive hemispheric policy. In 1982 Miguel de la Madrid Hurtado was elected to succeed President Lopez Portillo. By the mid-1980's a swift increase in foreign, coupled with falling oil prices, had plunged the country into severe financial straits. Amid reports of widespread irregularities, the PRI (Partido Revolucionario Institucional which is the largest and most important political party in Mexico) claimed victory in congressional elections in 1985. However in that same year the added burden of a devastating earthquake, which killed seven thousand kept Mexico's financial systems desolate. Carlos Salinas De Gortari, the PRI candidate was elected president in 1988. Another thing that happened was Hurricane Gilbert devastated the Yucatan Peninsula and severely damaged the southern most parts of Texas. The overall damage estimate was about eight hundred and eighty million. In 1992 there was a constitutional change that abolished restrictions imposed on the Catholic Church in 1917.

In December President Salinas, United States President Bush, and Prime Minister Mulroney of Canada signed the North American Free Trade Agreement, or better as NAFTA. The Mexican Legislature ratified it in 1993 and the treaty went into affect on January 1, 1994. This created the largest free trade zone in the world. By 1993, the Mexican Government had sold eighty percent of its industries to private investors for about twenty-one billion and had reduced inflation from one hundred and fifty percent to ten percent.

The 1994 elections were damaged by tragedy. In March the PRI presidential candidate, Luis Donaldo Colosio Murrieta, was assassinated while campaigning in Tijuana. He was replaced by his campaign manager, Ernesto Zedillo Ponce De Leon who won the election in august. On December 1, 1994, Zedillo was sworn in as Mexico's President. A crisis soon followed the election. The lack of confidence...