Mexico’s and Chile’s successes in regional integration development were achieved
through the signing of RTAs with large countries to push domestic opening-up and economic
growth, in sharp contrast to that of Argentina (Ibarra-Yunez 2003; Schiff 2002).
Mexico’s joining in the North American Free Trade Agreement (NAFTA) stimulated
capital and technology spillover and trade creation effects. In addition, with experiences
and personnel accumulated through negotiations with the United States, Mexico signed
FTAs with many countries. These agreements not only improved Mexico’s bargaining
power in economic interactions with other countries, they further deepened Mexico’s
collaborations with its partner countries. Through signing FTAs, Mexico pledged free
trade and openness to the outside world and thus locked in its development direction
and policy decisions. Its national polices then became more transparent and predictable, which won the confidence of its trading partners and multinationals to develop economic
cooperation with the country.