Has NAFTA improved and enhanced the automotive industry in Mexico in terms of economic performance, labour conditions and what control does the Mexican state have over those developments? this is the main question that this research try to answer. It explains that in some exogenous variables (even though there have been marked fluctuations specially in the period [2001-2004]), there are some important positive effects on the automotive industry since the agreement was implemented (regional trade has increased and production and exports in Mexico increased considerably from 1994 to 2000). This...