Intra-industry Trade Between the United States and Mexico: 1993- 1998

Changes in the trade of manufactured goods between the United States and Mexico are examined during the first 5 years of the North American Free Trade Agreement implementation period. Most industries exhibit large increases in intra-industry trade. An examination of intra-industry specialization indexes indicates that there are few industries in either country are candidates for significant adjustment problems. The results imply that there are relatively few major risks associated with greater regional economic integration in North America.