Mexico`s unilateral agricultural reform measures have eliminated government subsidies and price controls in the agricultural sector, resulting in higher tortilla prices. Tortillas are the staple food for Mexican food and a necessity for the poor. This is why higher prices have had a greater impact on the poor than on middle- and higher-income Mexicans. Mexico has also reformed its agricultural law. Countries that had been distributed to ejidos or rural groups after the 1910 revolution were granted the right to privatize. This has improved the efficiency of production processes, particularly in northern countries. Foreign direct investment (FDI) has been an integral part of U.S.-Mexico economic relations for many years, especially after NAFTA. Two-lane investments increased rapidly after the agreement came into force. The United States is the main source of direct investment in Mexico. The stock of U.S. direct investment in Mexico increased from $15.2 billion in 1993 to $104.4 billion in 2012 (587%) then fell to $92.8 billion in 2015 (see Table A-4).
FDI flows have been influenced over the years by other factors, with stronger growth during the economic expansion phase in the late 1990s and slower growth in recent years, possibly due to the economic slowdown caused by the 2008 global financial crisis and/or the rise of violence in Mexico. Although Mexican direct investment in the United States is significantly lower than U.S. investment in Mexico, it also grew rapidly, from $1.2 billion in 1993 to $16.6 billion in 2015 (1283% increase) (see Table A-4). 69 S.L. 103-182, sect. 201 b). As part of the request for consultation and intermediate application, the Chair must seek advice from the Private Sector Advisory Committees and the International Trade Commission (ITC); submit a report to the Recourse and Finance Committees on the proposed measures; and consult with the commissions and let it pass at least 60 days after the report before the obligation is imposed. Source: Sir compilation using USITC business data in dataweb.usitc.gov. Mexico has said it is considering modernizing NAFTA, but it is not clear how that would happen. Mexican government officials have suggested: Mexico may try to extend NAFTA negotiations to bilateral or trilateral cooperation on several issues, including security and immigration.104 In January 2017, tensions developed between the two countries over concerns about U.S. policy toward Mexico, and Mexican President Enrique Pea Nieto canceled an upcoming meeting with President Trump.105 President Trump said he would try to impose tariffs on imports from Mexico. Mexico responded that it would pay itself “immediately” if the United States increased tariffs on Mexican products.
President Enrique Pea Nieto commented that Mexico is ready to discuss NAFTA, 106 His Government also stated that Mexico could consider withdrawing from NAFTA if the negotiations were not favourable to the country, while the priority for the Mexican government would be to improve the agreement rather than withdraw from it.107 NAFTA service rules established a number of fundamental rules and commitments in the area of trade in services between partner countries.