NAFTA coalitions and the political viability of neoliberalism in Mexico

The process of political coalition building surrounding trade reform in Mexico had implications for the 1994-95 peso crisis. This article traces the formation of a free trade coalition between state and business elites across several episodes of trade opening, focusing on the NAFTA negotiations. The consolidation of this powerful but narrow coalition helped to cement the Salinas government's neoliberal reform agenda, boost investor confidence, and restore moderate levels of low-inflation growth in the early 1990s, but it also gave rise to the macroeconomic imbalances and political instability that led to the 1994 crisis. Since then, the economic basis of the neoliberal coalition may have recovered, but its political viability may be questionable.