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Trade Creation And Diversion Effects Of The North American Free Trade Agreement Of U.S. Sugar Imports From Mexico

  • Devadoss, Stephen
  • Kropf, Jurgen
  • Wahl, Thomas I.

A world sugar model consisting of 21 countries was developed to determine the effects of NAFTA of U.S. and Mexican sugar markets and to quantify the trade creation and diversion effects on U.S. imports from Mexico. Mexican sugar production increases under NAFTA, causing Mexico to become a net exporter. NAFTA induces sugar imports from Mexico to displace U.S. production, to meet demand expansion, and also to divert U.S. imports from other foreign suppliers to Mexico. Effects of NAFTA on the U.S. sugar market are small because of the side agreements which limit Mexican exports and which include corn sweetener consumption when computing Mexico's production surplus.

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File URL: http://purl.umn.edu/30773
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 20 (1995)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:30773
Contact details of provider: Web page: http://waeaonline.org/

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  1. Pelzman, Joseph, 1977. "Trade Creation and Trade Diversion in the Council of Mutual Economic Assistance: 1954-70," American Economic Review, American Economic Association, vol. 67(4), pages 713-22, September.
  2. Lopez, Rigoberto A., 1988. "Political Economy of the United States Sugar Policies," Working Papers 115808, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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