The Effect Of NAFTA On The Economics Of Mineral Production

The implementation of NAFTA in January of 1994 was expected to have small but beneficial effects for the Mexican economy, mostly through increased investment flows. Mexico's mining industry was especially likely to benefit, as mineral investment funds would be diverted to the now safer Mexico and away from similarly endowed but more risky Latin American mineral economies. The results of the past two years have shown that it is governments and macroeconomic factors that influence investment flows, rather than the fine-tuning of trade flows through so called "free-trade" agreements.