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Potential Entry of Chile into NAFTA: Are There Lessons from U.S./Mexican Fruit and Vegetable Trade?

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  • Julie V. Stanton

Abstract

Although the Clinton administration has been unable to obtain fast-track negotiating authority, eventual expansion of free trade in the hemisphere is likely, and the U.S. position might be affected by the failure to negotiate Chile's entry into NAFTA. One hurdle to broad-based support for Chile's entry is U.S. horticulture producers' claims of "injury" from NAFTA trade. We argue that (a) considerable empirical evidence acquits NAFTA of these charges, (b) liberalizing Chile's strict trade barriers should yield significant U.S. gains, and (c) NAFTA's combined trade-investment reform facilitates U.S. foreign agricultural investment. Together these benefits imply that resistance to Chile's entry is unwarranted.

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  • Julie V. Stanton, 1999. "Potential Entry of Chile into NAFTA: Are There Lessons from U.S./Mexican Fruit and Vegetable Trade?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 112-125.
    • Handle: RePEc:oup:revage:v:21:y:1999:i:1:p:112-125.
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    File URL: http://hdl.handle.net/10.2307/1349975
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    Cited by:

    1. Angela M. Krueger & Victoria Salin & Allan W. Gray, 2001. "Geographic diversification strategy and the implications of global market integration in table grapes," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 81-99.

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