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We give a constructive proof that all mixed states of N qubits in a sufficiently small neighborhood of the maximally mixed state are separable (unentangled). The construction provides an explicit representation of any such state as a mixture of product states. We give upper and lower bounds on the size of the neighborhood, which show that its extent decreases exponentially with the number of qubits. The bounds show that no entanglement appears in the physical states at any stage of present NMR experiments. Though this result raises questions about NMR quantum computation, further analysis would be necessary to assess the power of the general unitary transformations, which are indeed implemented in these experiments, in their action on separable states.