Trade politics in the Third World: a case study of Mexican GATT decision

Abstract

In 1980 Mexico decided not to join the General Agreement on Tariffs and Trade (GATT). Certain objective conditions formed a positive environment for Mexican adherence, but President L6pez Portillo postponed Mexican entry indefinitely. This critical decision is examined from two perspectives: a left-leaning foreign policy, and domestic constraints in the Mexican political system. Major foreign policy factors were a growing resentment of U.S. dominance combined with a preference for conducting relations with the U.S. on a bilateral basis. Internal political pressures reflected the continued reform of the Mexican political system at the upper levels and the relative autonomy of some elite groups from the state. L6pez Portillo's decision did not constitute an outright rejection of trade liberalization. However, the decision could have international repercussions in ‘politicizing’ U.S.-Mexican trade relations, in slowing trends toward freer trade (especially in Latin America), and in strengthening multilateral organizations like UNCTAD in which Third World countries exercise considerable power.