CIAO DATE: 04/06

Policy Reform in the Mexican Telecommunications Sector

Introduction

In June 1990, Presidents George Bush and Mexican President Carlos Salinas de Gortari announced their intention to begin negotiating a free trade agreement. Canada joined the negotiations the following August. The proposed North American Free Trade Agreement (NAFTA) provoked an intense lobbying campaign in the U.S. Congress, in what became a major political battle for its congressional approval.

Some economic interests would win, others would lose with NAFTA. Congress members were worried about the loss of American low-skilled jobs and environmental issues. Regional interests were voiced loudly in the House of Representatives. A loose coalition of interest groups, including the AFL-CIO, public interest groups, and environmental organizations, coordinated opposition to the agreement. On the pro-NAFTA side was an ad hoc group of corporations, labeled USA-NAFTA, which included the National Association of Manufacturers and the U.S. Chamber of Commerce. The Mexican government mounted an extensive lobbying campaign in favor of the trade pact.

After intense congressional lobbying, President Bush obtained fast-track negotiating authority for NAFTA. Negotiations concluded in August 1992, and the following December, Presidents Bush and Salinas, as well as Canada's Prime Minister Mulroney, signed the pact. Presidential candidate Bill Clinton, under intense pressure from key constituencies of the Democratic Party, supported NAFTA "in principle", but only if complementary agreements on labor and environmental issues were included. Once in office, Clinton negotiated these "side agreements" with Mexico and Canada, but still, strong opposition to NAFTA continued. In order to win congressional votes needed for the pact's approval, President Clinton engaged in a series of political compromises or "side-payments" with legislators, being able to form a congressional bipartisan coalition that allowed NAFTA passage.

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