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The Agriculture of Mexico After Ten Years of Nafta Implementation

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  • Antonio Yunez-Naude
  • Fernando Barceinas Paredes

Abstract

The inclusion of the agrarian sector in the North American Foreign Trade Agreement (NAFTA) has created controversy since the beginning of negotiations. Mexico’s official vision has been that free trade, as well as agricultural reforms initiated in the country in the late eighties would transform the sector and increase national income; NAFTA opponents, on the other hand, claim that the Agreement has resulted in food dependency, massive rural migration and aggravated poverty. This paper present the main results of our econometric research on the true outcomes of nearly ten years into the NAFTA and around fifteen years of agrarian reforms, in terms of prices, trade and domestic agricultural production. Our findings suggest that the much-expected transformation of the Mexican agricultural sector has not occurred.

Suggested Citation

  • Antonio Yunez-Naude & Fernando Barceinas Paredes, 2004. "The Agriculture of Mexico After Ten Years of Nafta Implementation," Working Papers Central Bank of Chile 277, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:277
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    References listed on IDEAS

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    1. Antonio Yunez–Naude, 2003. "The Dismantling of CONASUPO, a Mexican State Trader in Agriculture," The World Economy, Wiley Blackwell, vol. 26(1), pages 97-122, January.
    2. Ben-David, Dan & Papell, David H., 1997. "International trade and structural change," Journal of International Economics, Elsevier, vol. 43(3-4), pages 513-523, November.
    3. Antonio Yúnez Naude & Fernando Barceinas, 2000. "Efectos de la desaparición de la Conasupo en el comercio y en los precios de los cultivos básicos," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 15(2), pages 189-227.
    4. Andrews, Donald W K, 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Econometrica, Econometric Society, vol. 61(4), pages 821-856, July.
    5. Benjamin Davis & Sudhanshu Handa & Marta Ruiz-Arranz & Marco Stampini & Paul Winters, 2002. "Conditionality and the Impact of Programme Design on Household welfare: Comparing two diverse cash transfer programmes in rural Mexico," Working Papers 02-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    6. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    7. Robinson, Sherman & Burfisher, Mary E. & Hinojosa-Ojeda, Raul & Thierfelder, Karen E., 1993. "Agricultural policies and migration in a U.S.-Mexico free trade area: A computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 673-701.
    8. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    9. Davis, Benjamin & Handa, Sudhanshu & Ruiz -Arranz, Marta & Stampini, Marco & Winters, Paul, 2002. "Conditionality and the impact of program design on household welfare: comparing two diverse cash transfer programs in rural Mexico," ESA Working Papers 289104, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    10. Taylor, J. Edward & Yunez-Naude, Antonio & Hampton, Steve, 1999. "Agricultural Policy Reforms and Village Economies: A Computable General-Equilibrium Analysis from Mexico," Journal of Policy Modeling, Elsevier, vol. 21(4), pages 453-480, July.
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    Cited by:

    1. Antonio YUNEZ NAUDE & J. Edward TAYLOR, 2006. "The Effects Of Nafta And Domestic Reforms In The Agriculture Of Mexico: Predictions And Facts," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 23, pages 161-186.
    2. Unai Pascual & Roberto Martínez-Espiñeira, 2009. "The effect of environmental change and price policies on livelihoods in tropical agroforestry systems," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 433-446.
    3. Silvia Prina, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 594-608, August.
    4. Guillermo BENAVIDES-PERALES & Isela Elizabeth TELLEZ-LEON & Francisco VENEGAS-MARTINEZ, 2018. "The impact of banking and external sectors on Mexican agriculture in the period 1995-2015," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(1), pages 36-49.

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