Mexico has a federal presidential representative democratic republic system of government. The three main political parties are the Institutional Revolutionary Party, the National Action Party, and the Party of the Democratic Revolution. Felipe Calderón of the National Action Party won the most recent presidential election in 2006. Mexico has the 11th largest economy in the world with a rapidly developing modern industry and services sector. It trades extensively within NAFTA and with other countries through agreements reducing restrictions on foreign investment and trade. Mexico has diplomatic relationships with the U.S. through agreements like NAFTA, with China through some tensions over trade, and with Europe dating back to their recognition of Mexican independence.