Economy

The economy has seen some growth since 1993, when Mexico signed NAFTA with the United States and Canada. NAFTA lowered trade barriers and increased number of maquiladoras (border industries), where U.S. investment employs Mexican labor. Economists are divided on how much NAFTA may have helped Mexico's economy. Although some sectors have grown, others, such as agriculture, have been harmed by competition from duty-free, heavily subsidized products from the United States. In addition, maquiladoras have drawn some criticism for not meeting typical U.S. guidelines for wages, safety, and environmental regulations. Mexico also has entered free-trade agreements with the European Union, much of Central America, and Israel. The 2008 economic crisis, which started in the United States, spread to Mexico, bringing a sharp decline in exports to the United States, tourism, and remittances sent home by those who have left Mexico. The government has taken steps to reduce unemployment and stem inflation.