Vanderbilt Journal of Transnational Law

First Page



The investment provisions of NAFTA, which establish a liberal investment regime and a hospitable atmosphere for foreign investment amongst its signatories, the United States, Canada, and Mexico, represents a new chapter in Mexico's approach to foreign investment. This Article examines the significance of Mexico's shift to welcoming foreign investment and its concomitant acquiescence to traditional notions of expropriation and compensation espoused by more developed states. The author explores Mexico's historical love-hate relationship with foreign investment and its role over the years as leading voice for Third World concerns regarding the potentially exploitive nature of such investment. In this article, a less flattering view of Mexico's participation in NAFTA emerges, one that perceives the Mexican government as repudiating not only its role as guiding hand in its own economy, but also its place as the leading proponent of the Third World cautionary approach to foreign investment.