Advanced Search
MyIDEAS: Login to save this paper or follow this series

09-08 "Agricultural Dumping Under NAFTA: Estimating the Costs of U.S. Agricultural Policies to Mexican Producers"

Contents:

Author Info

  • Timothy A. Wise

Abstract

With the opening of the Mexican economy under the North American Free Trade Agreement (NAFTA), Mexican agriculture came under new competitive pressures from U.S. exports. It was widely recognized at the beginning of NAFTA that Mexico had geographically-based comparative advantages in supplying off-season fruits and vegetables to a hungry U.S. market. NAFTA’s liberalization of agricultural trade produced the expected results, with more staple crops and meats flowing south and more seasonal fruits and vegetables flowing north. In agriculture, tariffs and quotas have now mostly been eliminated. Not so agricultural subsidies, which were left largely undisciplined by NAFTA. High U.S. farm subsidies for exported crops, which compete with Mexican products, have prompted charges that the level playing field NAFTA was supposed to create is in fact tilted heavily in favor of the United States. This paper assesses the costs of U.S. agricultural policies to Mexican producers by examining the extent to which the United States exported agricultural products to Mexico at prices below their costs of production, one of the definitions of “dumping” in the WTO. We study eight agricultural goods – corn, soybeans, wheat, rice, cotton, beef, pork, and poultry – all of which are heavily supported by the U.S. government, were produced in Mexico in significant volumes before NAFTA, and experienced dramatic increases in U.S. exports to Mexico after the agreement. We look at the years 1997-2005 because the beginning year follows both the implementation of NAFTA and the enactment of the 1996 U.S. Farm Bill, which significantly changed the nature of U.S. farm support. We estimate “dumping margins” and the costs to Mexican producers of prices driven below production costs by U.S. policies. We estimate Mexican losses for the eight products at $12.8 billion over the nine-year period, more than the value of Mexican tomato exports to the United States. Corn farmers experienced the greatest losses: $6.6 billion, an average of $99 per hectare per year.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ase.tufts.edu/gdae/Pubs/wp/09-08AgricDumping.pdf
Download Restriction: no

Bibliographic Info

Paper provided by GDAE, Tufts University in its series GDAE Working Papers with number 09-08.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:dae:daepap:09-08

Contact details of provider:
Postal: 44 Teele Avenue Medford, MA 02155
Phone: 617-627-3530
Fax: 617-627-2409
Email:
Web page: http://ase.tufts.edu/gdae
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kevin P. Gallagher & Francisco Aguayo, . "01-06 "The $6.1 Million Dollar Question"," GDAE Working Papers 01-06, GDAE, Tufts University.
  2. Timothy A. Wise, . "04-02 "The Paradox of Agricultural Subsidies: Measurement Issues, Agricultural Dumping, and Policy Reform"," GDAE Working Papers 04-02, GDAE, Tufts University.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Timothy A. Wise, 2012. "The Cost to Mexico of U.S. Corn Ethanol Expansion," GDAE Working Papers 12-01, GDAE, Tufts University.
  2. Antonio Turrent Fernández & Timothy A. Wise & Elise Garvey, 2012. "Achieving Mexico’s Maize Potential," GDAE Working Papers 12-03, GDAE, Tufts University.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dae:daepap:09-08. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erin Coutts).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.