Argues that the USA and Mexico are affected by both positive and negative impacts and on the whole, the benefits predominate. While Mexico shoulders the greater burden of adjustment, it is given the greater stimuli to modernisation. The flow of investments and exports are increasing appreciably, access to the most important market is safe-guarded, and the USA assumes the role of protecting power for Mexico's well-being. The USA can claim a slight improvement in its competitives, and in part, achieves its foreign policy goal of consolidating the market-oriented policy in its neighbouring country. In terms of regional policy, Mexico is decoupling from Latin America, since an accession of Latin American countries to NAFTA is not likely. Concludes that NAFTA should not be mistaken for a development strategy for Mexico.

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