Theu.s. De La Madrid Of Mexico Essay - 1882 Words

Case Study: In the 1980s Mexico was marked by inflation which caused a decline in standard of living. Much of the government’s efforts in addressing the challenges were placed on privatizing state industries and moving toward trade liberalization. Mexico began to reverse its protectionist stance when the government was forced to declare that it was unable to repay its debts and had to default on its loans. The Mexican government implemented a series of measures to restructure the economy that included progressed trade liberalization. President Miguel de la Madrid of Mexico then took steps to open the economy. He did this by initiating procedures to replace import substitution policies with policies aimed at attracting foreign investment, lowering trade barriers, and making the country competitive in exports. In 1987, Mexico and the United States entered into a mutual understanding on trade and investment called the Framework of Principles and Procedures for Consultation Regar ding Trade and Investment Relations. Prior to this agreement, there had been no legal framework to govern commercial relations between the two countries. There were two parts to the agreement, one served as a way to address trade issues, and the other established an agenda for the removal of trade barriers. Seven aspects were listed in the agenda for possible future discussions; textiles, agriculture, steel, investment, technology transfer and intellectual property, electronics, and information on the