Since the North American Free Trade Agreement (NAFTA) was enacted in 1994, the amount of foreign direct investment (FDI) inflow in Mexico has increased significantly. After 20 years since NAFTA’s inception, this paper examines how FDI flows into Mexico compare to total factor productivity (TFP) for the 1960-2013 period. Results show there is a statistically significant unexplained portion of TFP positively affecting FDI. Factors used to determine TFP include total imports, total exports, and unemployment rate from 1980-2013. Results conclude that there are implications regarding international trade policy of the negative effects on FDI as they pertain to Mexico before and after the inauguration of NAFTA.