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Agriculture, ranching, timber, mining, oil, natural gas, fishing, tourism and manufacturing are Mexico ís primary revenue earners.  Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. 

Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US ; income distribution remains highly unequal. 

Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Real GDP growth was a weak -0.3% in 2001, 0.9% in 2002, and 1.2% in 2003, with the US slowdown the principal cause. Mexico implemented free trade agreements with Guatemala , Honduras , El Salvador , and the European Free Trade Area in 2001, putting more than 90% of trade under free trade agreements. 

The government is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and provide incentives to invest in the energy sector, but progress is slow.

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