THE IMPACT OF NAFTA ON MEXICO ENVIRONMENTAL-POLICY

A major controversy during the debate over the North American Free Tra de Agreement focused on the impact of NAFTA on Mexico's environment. T his paper examines the evidence of impact specifically on Mexico's env ironmental policy. Criteria of impact are developed, and comparisons m ade for three periods: before 1990 as the baseline period; 1990-93 whe n NAFTA was being negotiated; and beginning in 1994 when NAFTA came in to effect. Much evidence indicates that Mexico's environmental policym aking and enforcement did improve in the early 1990s while NAFTA was b eing debated. Some evidence also suggests that the NAFTA-influenced en vironmental commitment was sustained during the 1995 financial crisis. Thus, it is concluded that NAFTA has contributed significantly to Mex ico's environmental policy.