Making Neoliberalism Possible: The State's Organization of Business Support for NAFTA in Mexico

Abstract

In shifting from nationalist/statist to neoliberal economic policies, states seek out and build alliances with other advocates—especially large capital—and work to disorganize political opponents—including small business. This article examines the politics of the private sector's involvement in trade liberalization in the developing world through a study of Mexico's proposal, negotiation, and ratification of the 1994 North American Free Trade Agreement (NAFTA). The article identifies three instruments that the Mexican state used to construct politically crucial support for NAFTA on the part of domestic business: control over political representation, material concessions to potential critics, and careful strategic framing.