ABSTRACT
The Mexican Constitution of 1917 gave the government responsibility for managing and regulating the economy. North American Free Trade Agreement (NAFTA) could encourage a restructuring of agriculture in the Lower Rio Grande Valley (LRGV) to emphasize the complementarity between Mexican products and those available in Texas. Economic performance began to improve late in the 1980s with the implementation of a market-oriented, open economy and a more disciplined public sector. The focus on a “global economy” that has surfaced has ramifications that extend Cinternational commerce. In a broader context, however, total real income in both countries could increase because of the trade-creating benefits of NAFTA. Environmental issues compound the issues facing the LRGV and have been the source of many complaints from critics of NAFTA. As a part of the agreement on labor, Mexico has agreed to work to raise minimum wages paid to Mexican workers, linking them to productivity increases in hopes of improving the standard of living in Mexico.
