Discusses the nature and impact of Mexico's current trade reform strategy in the context of severe macroeconomic stabilization. Shows that during the past eight years the Mexican Governemnt has systematically opened the domestic market to world prices, especially after 1984, when extensive import license removal took place. However, the deflationary policies implemented by the Government have had a substantially negative effect on the country's rate of capital accumulation, particularly investment in infrastructure. Points out several underlying problems with Mexico's current trade strategy insofar as the export assembly industry is concerned.

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