ABSTRACT
This chapter analyzes the factors that led Mexico to negotiate the North American Free Trade Agreement and explores the relevance of the initiative for that country’s future relationship with Latin America, especially with Colombia and Venezuela, within the so–called Group of Three (G3). The mexico’s main policy objectives were to achieve rapid economic growth, reduce inflation and restore the confidence necessary to win back flight capital, and to service its large external debt. Economic policies emphasized fiscal and monetary stringency, deregulation, privatization, and further liberalization of trade and investment policies. Mexican interests in the G3 negotiations must be seen in the context of that country’s overall approach toward Latin America, which is a priority region in economic and political terms. The G3 has already created high level working groups in the areas of energy, trade, telecommunications, maritime and air transportation, finance, culture, tourism and cooperation with Central America.
