Future of NAFTA with Mexico’s new President
By Rafael Tirado R, Esq.
When Enrique Peña Nieto assumed Mexico’s presidency on December 1st, 2012 he inherited the fourteenth-largest economy. But he also faces the perception of his neighbors to the north that Mexico is a violent country. A poll conducted in 2012 revealed that the majority of U.S. adults believe it is unsafe to travel to Mexico and that Mexico is a problem for the United States.
Another challenge is reviving a struggling economy. The new president is proposing an ambitious energy reform that will attract more foreign direct investment (FDI), but will not run afoul of Mexico’s constitutional prohibition against selling the nation’s natural resources to foreigners. Peña Nieto has set an ambitious goal of achieving a 6 percent annual growth rate by the conclusion of his term, and he is convinced that such growth and the resulting job creation is the only way to reduce poverty in a sustainable manner.
The most important foreign relationship for Mexico is that with the United States. In terms of the bilateral relationship, Peña Nieto and his team may know what to do: put the issues of trade and investment back to the main agenda. The Trans-Pacific Partnership is a great opportunity for NAFTA countries to open new markets in Asia.
On the economic front, the connection is through trade. For US citizens, NAFTA is one more trade agreement. For Mexicans, NAFTA is a source of legal certainty for foreign investors.
President Barack Obama and President Enrique Peña Nieto have agreed to strengthen US-Mexico security, trade and partnerships.
Mr. Peña Nieto spent his first days as president-elect in talks with leaders in the US and Canada, Mexico’s partners in the regional trade organization.
We must move ahead now. Until the three economies of our region are better integrated, the full benefits of North American Free Trade Agreement will never materialize. 
The region has unique strengths that perfectly complement each other. Canada has abundant natural resources and energy supplies. Mexico has a young, low-cost labor force in close proximity to the United States. The U.S. is the global leader in technology and innovation. For our economies to benefit fully from NAFTA, these strengths need to be integrated.
If you are seeking legal advice, please contact Rafael Tirado, Esq. Licensed to Practice Law in USA (AZ) and Mexico LL.M. in International Trade Law at (602) 266-0292 or rtirado@tiradolaw.com
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