This paper presents the text of a speech to the seminar on Mexico Today: Some Comments on President Salinas's State of the Nation Report, presented at the Mexican Consulate, Los Angeles, November 13, 1990. The paper reviews changes that have taken place in Mexico beginning in the mid-1980s under the administration of President Miguel de la Madrid Hurtado and continuing under President Carlos Salinas de Gortari. The author describes important reforms that are occurring in Mexico's institutions, and points out that there is a corresponding new nationalist mindset emerging as well. This new mindset is characterized by an increased openness to the outside world. In addition, the United States and Mexico have now accepted interdependence as the concept defining their bilateral relationship, and that interdependence is increasing and becoming more permanent. The author concludes that a free-trade agreement between the United States and Mexico would contribute to the success of the restructuring under way in Mexico.