NAFTA: Few Gains for Mexico’s Workers

Authors

  • Francisco Zapata

Abstract

The Mexican economy has changed dramatically since the early 1980s. After the debt crisis of 1982, Mexico took a number of steps to prevent a future crisis. State enterprises in steel, mining, and telecommunications were privatized, and some were sold to transnational corporations. Treaties that reduce import and export barriers, such as the North American Free Trade Agreement, were signed with many of the country’s trading partners.1NAFTA promised to improve the condition of workers in the United States, Canada, and Mexico. At least in Mexico, however, that hasn’t happened. Instead, more open trade has intensified the pace of job loss in rural areas and has magnified other troubling changes in the occupational structure that were already under way. Real wages have stagnated and unions are weaker. Despite investments made by many multinational companies, most factories continue to use outdated equipment and inefficient work systems.