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Estimated Impacts of a Potential U.S.-Mexico Preferential Trading Agreement for the Agricultural Sector

Author

Listed:
  • Krissoff, Barry
  • Neff, Liana
  • Sharples, Jerry A.

Abstract

We develop a three region - U.S., Mexico, and Rest-of-World - simulation model to analyze the effects on the agricultural sector of a potential preferential trading arrangement (PTA) between Mexico and the United States. The simulation exercises indicate that two-way agricultural trade increases and welfare improves in the United States and Mexico from a bilateral preferential agreement on agricultural products. Our results show that when border protection is eliminated by the United States and Mexico, bilateral agricultural trade expands by over 15 percent. Relative to the size of the two agricultural sectors, however, the overall impact is very small for the U.S. agricultural sector but there is a more significant adjustment for Mexican agriculture.

Suggested Citation

  • Krissoff, Barry & Neff, Liana & Sharples, Jerry A., 1992. "Estimated Impacts of a Potential U.S.-Mexico Preferential Trading Agreement for the Agricultural Sector," Working Papers 51135, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatrwp:51135
    DOI: 10.22004/ag.econ.51135
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    File URL: https://ageconsearch.umn.edu/record/51135/files/92-1.pdf
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    Cited by:

    1. Qasmi, Bashir A. & Fausti, Scott W., 1994. "Capturing the Impacts of North American Free Trade Agreement on South Dakota's Economy," Economics Staff Papers 232355, South Dakota State University, Department of Economics.
    2. Yumkella, Kandeh K. & Schweikhardt, David B. & Lyford, Conrad & Sorenson, Vernon L. & Suvedi, Murari, 1993. "Michigan Agriculture: Links to NAFTA - A Resource Manual for Extension Educators," Agricultural Economic Report Series 201425, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Burfisher, Mary E. & House, Robert M. & Langley, Suchada V., 1992. "Free Trade Impacts On U.S. And Southern Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(1), pages 61-78, July.

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    Keywords

    International Relations/Trade;

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