Mexican Trade Policy
MEXICAN trade policy is not constant in that efforts to reduce import restrictions with the goal of improving industrial competitiveness have given way to renewed protectionism at times of balance-of-payments crisis. The years 1982 and 1983 were times of such financial crisis and, hence, of restrictive import policy.
As a result of Mexico's past policy of industrialization and the heavy emphasis placed on import substitution, Mexican merchandise imports are composed mainly of industrial inputs and capital goods (table 4-1). These two categories normally make up between 80 and 90 percent of the value of total Mexican imports.1 This industrialization policy was made effective by Mexico's system of protection against imports. Since 1947 import licenses have supplemented to shield domestic production against competition from outside, and by the 1970s, import____________________