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Welfare Impacts of the Mexico Potato Quarantine

Author

Listed:
  • Richards, Timothy J.
  • Molina, Ignacio
  • Hussein, Osman

Abstract

Under the North American Free Trade Agreement (NAFTA) tariffs on U.S. potato imports to Mexico were phased out by 1993. Citing phytosanitary issues, in 1996, the Mexican government placed quantitative restrictions on U.S. potato imports and restricted their import only to designated border areas. This article estimates the welfare cost of restricting U.S. potato imports into Mexico. We find that removing trade restrictions may lead to over 1.8 million tons of new imports into Mexico, a gain of consumer surplus of 4.0 billion pesos per year, and a loss of 2.9 billion pesos of producer surplus.

Suggested Citation

  • Richards, Timothy J. & Molina, Ignacio & Hussein, Osman, 2009. "Welfare Impacts of the Mexico Potato Quarantine," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(03), December.
  • Handle: RePEc:ags:joaaec:56661
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    File URL: http://purl.umn.edu/56661
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    More about this item

    Keywords

    international trade; non-tariff barriers; potatoes; quarantine; sanitary and phytosanitary barriers; welfare loss; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Relations/Trade; Political Economy; F13; L13; Q13; Q17; C35;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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