Since the passage of the North American Free Trade Agreement (NAFTA) in 1994, Mexico has been flooded with imports from abroad. It’s inescapable — everywhere you look, there’s a reminder of NAFTA: the ubiquitous Coca-Cola, Doritos snacks, L’Oreal hair products, Wal-Marts, Quaker State oil, Palmolive soap, Sony televisions, Kimberly-Clark tissues, etc.

The president of Mexico, Vicente Fox Quesada, was once the president of Coca-Cola Mexico. In fact, foreign goods (especially American and Canadian ones) have such a hold on the Mexican economy that more than half of the products in Mexican television commercials are owned by foreign companies.

Those who agree with free markets would respond that what has happened in Mexico is a great thing. These companies would not be so successful unless they were doing something right. Indeed, it is not their fault if foreign companies make (fill in the blank) better than a Mexican company would.

There is some truth to this line of reasoning — after all, most people prefer higher-quality products to lower ones. However, the part that the free traders do not talk about is the people who are harmed the most by NAFTA: Mexican workers in small businesses.

Have you ever used a Lanix computer? Or eaten Bimbo bread? Used Cemento Cruz Azul to pave your driveway? Probably not. All of the above are Mexican products made by large corporations, but I bet that you will not find them in the United States. The theory of NAFTA was that with lower trade barriers Mexican and American goods would flow more easily across the border.

And this is exactly what has happened … except that under NAFTA, Americans force their products into the Mexican markets while the inverse does not occur in America. Imagine that you own a small shoe store in Mexico. Before NAFTA, you were protected against Nike and Co. because Nike had to pay tariffs to sell its shoes in Mexico. Nowadays, Nike can sell whatever it wants when it wants where it wants for how much it wants.

Since many Mexicans earn less than $4,000 a year, it is a lot cheaper to buy the Nike shoes made in China than it is to pay more for the Mexican shoes. Many authentic Mexican businesses have had to close their doors, unable to compete with the cheaper Chinese shoes.

In addition, many American companies have set up camp in Mexico, especially along the border. Leaving empty-handed the many people employed in the United States who previously made the same product, the American factories are converted into maquiladoras, where labor and environmental standards are worse. Furthermore, these maquiladoras can pay their Mexican workers less than what the Americans could make (and the Mexican workers will not complain because making some money is better than making no money at all).

For example, General Motors has a plant in Silao, Guanajuato, where industrial trucks are constructed. Instead of selling these trucks to Mexican businesses, after production these trucks are shipped to the United States. The Mexicans who work at GM certainly are getting paid, but the people who could use trucks the most — the Mexican businesses — have to pay extra to order them from the United States. How silly!

Although NAFTA deserves a lot of the blame, the Mexican government is guilty too. Much of the blame can be traced to former president Carlos Salinas (1988-1994). Salinas championed NAFTA when most of Mexico thought otherwise. It’s no surprise that once he fled from office to Ireland, the Mexican peso tanked and a recession set in.

Furthermore, the political parties have no real solutions to the unemployment and loss of jobs here. Despite proposing more jobs and change (“We have new proposals for you!” “We have new ideas to create jobs if you elect [fill in the blank]!”), the lives of average Mexicans remain poor. No wonder thousands of Mexicans attempt to cross the border illegally every year.

In addition, the priorities of the government are in the wrong place. Instead of busting vendors of pirated music and DVDs, drug dealers and giving the police M-46 semi-Uzis, the government should invest some money into getting six year olds who sell gum off the streets and into school.

An undereducated country does not make a rich country. The corruption and bureaucracy in Mexican government definitely benefit few at the expense of the poor (i.e. federal legislators get paid about $100,000 although the Congress is in session for only five months!).

The future of the Mexican economy looks bleak. Because it is so intertwined with the economy of the United States, a slight recession north of the border could lead to big consequences south of the border. Mexico needs to diversify its economy and support more of its own businesses. However, with corrupt government officials and a largely indifferent population (who has time to focus on politics when you do not know from where your next meal will come?), it is easier said than done.

David Presberry ([email protected]) is a senior majoring in political science. He is currently studying abroad in Guanajuato, Mexico for the semester.