How did NAFTA affect the middle class in Mexico?

The North American Free Trade Agreement (NAFTA) had complex and varied effects on the Mexican middle class. While the agreement contributed to an expansion of the middle class in the years following its implementation, the economic reality for many families remained challenging.1

The impact of NAFTA on Mexican society included several key factors:

• Consumer Access: The surge in trade led to an influx of better-quality and lower-priced consumer goods, which benefited Mexican consumers.1
• Economic Volatility: The post-NAFTA period was marked by economic instability, notably the 1994 peso devaluation and subsequent recession. During this crisis, lower- and middle-class families faced significant strain as unemployment rose and poverty levels increased.2
• Structural Shifts: The agreement encouraged a transition toward service-based and industrial jobs, particularly within maquiladoras. However, this shift also displaced many family farmers who struggled to compete with subsidized agricultural imports from the United States.34
• Growth Limitations: Despite the expansion of the middle class, Mexico’s overall GDP growth during the NAFTA era was not as robust as that of some other Latin American nations, and significant growth in income per person was not achieved.1