The most serious problem created by trade liberalization is the damage it has caused to Mexico's national industrial structure. This exports have practically no effect on the rest of the economy in terms of stimulating domestic demand or economic activity. Exports have also become less diversified. Exports are not only concentrated in a few activities but in a small number of companies. The changing structure of imports has also undermined Mexico' s industrial development.
Most imports are intermediate goods, mainly raw materials.
These imports displace national production and lead to job losses due to the massive shut down of companies that used to be suppliers to Mexican companies. This tendency was especially conspicuous in 1995. In summary, a growing percentage of imports were simply incorporated into export goods without any significant impact on the Mexican market.