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Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement

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  • Kosse, Elijah
  • Devadoss, Stephen

Abstract

This study develops a three-county trade model of the United States, Mexico, and Canada to analyze the effects of the 2013 Suspension Agreement on prices, production, consumption, trade flows, and welfare in each country. Although only the United States and Mexico are signatories to the agreement, Canada was also included because the U.S. minimum price distorts prices across the region. Three tomato categories—field, greenhouse, and cherry and grape—are studied because each has a distinct minimum price. The overall welfare effects are positive for Mexico and Canada, but negative for the United States.

Suggested Citation

  • Kosse, Elijah & Devadoss, Stephen, 2016. "Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 48(4), November.
    • Handle: RePEc:ags:joaaec:350124
    DOI: 10.22004/ag.econ.350124
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    References listed on IDEAS

    as
    1. Cook, Roberta L. & Calvin, Linda, 2005. "Greenhouse Tomatoes Change the Dynamics of the North American Fresh Tomato Industry," Economic Research Report 7244, United States Department of Agriculture, Economic Research Service.
    2. Padilla-Bernal, Luz E. & Thilmany, Dawn D., 2000. "Mexican-U.S. Fresh Tomato Trade: An Analysis Of Volume, Prices And Transaction Costs," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36445, Western Agricultural Economics Association.
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