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Effect Of Liberalized U.S.-Mexico Dry Onion Trade: A Spatial And Intertemporal Equilibrium Analysis

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  • Fuller, Stephen W.
  • Gillis, Melanie
  • Ziari, Houshmand A.

Abstract

A spatial, intertemporal equilibrium model of the North American dry onion economy is constructed to analyze the impact of liberalized U.S.-Mexico trade. In a free-trade environment, exports of Mexican onions to the U.S. are projected to increase about 50%, while Mexico's share of the U.S. market increases from 8.7 to 12.8%. Farm-level prices in the U.S. are projected to decline 8.9%, while production declines 2.4%. The effect of free trade on U.S. producers is disproportional across regions. Northwest storage onion producers experience the greatest decline in production; however, analysis suggests that improved storage methods may offset a portion of the unfavorable impacts of onion producers; the industry would not be economically devastated.

Suggested Citation

  • Fuller, Stephen W. & Gillis, Melanie & Ziari, Houshmand A., 1996. "Effect Of Liberalized U.S.-Mexico Dry Onion Trade: A Spatial And Intertemporal Equilibrium Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(1), pages 1-13, July.
    • Handle: RePEc:ags:joaaec:15222
    DOI: 10.22004/ag.econ.15222
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    References listed on IDEAS

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    1. Ornelas, Fermin S. & Shumway, C. Richard, 1993. "Supply Response And Impact Of Government-Supported Crops On The Texas Vegetable Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-10, April.
    2. Maury Bredahl & Andrew Schmitz & Jimmye S. Hillman, 1987. "Rent Seeking in International Trade: The Great Tomato War," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 1-10.
    3. Fuller, Stephen W. & Capps, Oral, Jr. & Bello, Haruna & Shafer, Carl E., 1991. "Structure Of The Fresh Onion Market In The Spring Season: A Focus On Texas And Its Competition," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-13, December.
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    Cited by:

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    2. Malaga, Jaime E. & Williams, Gary W. & Fuller, Stephen W., 2001. "US-Mexico fresh vegetable trade: the effects of trade liberalization and economic growth," Agricultural Economics, Blackwell, vol. 26(1), pages 45-55, October.
    3. Cui, Lina, 2010. "Trade Factors Affecting Apple Exports from China to Thailand," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56388, Southern Agricultural Economics Association.

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