On 1 January 1994, Mexico became a full member of the North American Free Trade Agreement (NAFTA), joining the United States and Canada. Mexico has a free market economy that recently entered the trillion-dollar class.[70] It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-quarter that of the United States; income distribution remains highly unequal. Trade with the United States and Canada has tripled since the implementation of NAFTA. Mexico has free-trade agreements with more than 40 countries, governing 90% of its foreign commerce. In 1995, President Ernesto Zedillo faced the "December Mistake" crisis, triggered by a sudden devaluation of the peso. There were public demonstrations in Mexico City and a constant military presence after the 1994 rising of the Zapatista Army of National Liberation in Chiapas.[71] The United States intervened rapidly to stem the economic crisis, first by buying pesos in the open market, and then by granting assistance in the form of $50 billion in loan guarantees. The peso stabilized at 6 pesos per dollar. By 1996, the economy was growing, and in 1997, Mexico repaid, ahead of schedule, all U.S. Treasury loans. Zedillo oversaw political and electoral reforms that reduced the PRI's hold on power. After the 1988 election, which was strongly disputed and arguably lost by the government, the IFE (Instituto Federal Electoral – Federal Electoral Institute) was created in the early 1990s. Run by ordinary citizens, the IFE oversees elections with the aim of ensuring that they are conducted legally and impartially. Accused many times of blatant fraud, the PRI held almost all public offices until the end of the 20th century. Not until the 1980s did the PRI lose its first state governorship, an event that marked the beginning of the party's loss of hegemony. Emphasizing the need to upgrade infrastructure, modernize the tax system and labor laws, integrate with the U.S. economy, and allow private investment in the energy sector, Vicente Fox Quesada, the candidate of the National Action Party (PAN), was elected the 69th president of Mexico on 2 July 2000, ending PRI's 71-year-long control of the office. Though Fox's victory was due in part to popular discontent with decades of unchallenged PRI hegemony, also, Fox's opponent, president Zedillo, conceded defeat on the night of the election—a first in Mexican history.[74] A further sign of the quickening of Mexican democracy was the fact that PAN failed to win a majority in both chambers of Congress—a situation that prevented Fox from implementing his reform pledges. Nonetheless, the transfer of power in 2000 was quick and peaceful. President Felipe Calderón Hinojosa (PAN) took office after one of the most hotly contested elections in recent Mexican history; Calderón won by such a small margin (.56% or 233,831 votes.)[75] that the runner-up, Andrés Manuel López Obrador of the leftist Party of the Democratic Revolution (PRD) contested the results. Despite imposing a cap on salaries of high-ranking public servants, Calderón ordered a raise on the salaries of the Federal Police and the Mexican armed forces on his first day as president. Calderón's government also ordered massive raids on drug cartels upon assuming office in December 2006 in response to an increasingly deadly spate of violence in his home state of Michoacán. The decision to intensify drug enforcement operations has led to an ongoing conflict between the federal government and the Mexican drug cartels. On July 1, 2012, Enrique Peña Nieto was elected president of Mexico with 38% of the vote. He is a former governor of the state of Mexico and a member of the PRI. His election returned the PRI to power after 12 years of PAN rule. He was officially sworn into office on December 1, 2012. http://en.wikipedia.org/wiki/History_of_Mexico

• published: 19 Sep 2014
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