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Impact of the North American free trade agreement on high-fructose corn syrup supply in Canada: a natural experiment using synthetic control methods

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  • Barlow, Pepita
  • McKee, Martin
  • Basu, Sanjay
  • Stuckler, David

Abstract

BACKGROUND: Critics of free trade agreements have argued that they threaten public health, as they eliminate barriers to trade in potentially harmful products, such as sugar. Here we analyze the North American Free Trade Agreement (NAFTA), testing the hypothesis that lowering tariffs on food and beverage syrups that contain highfructose corn syrup (HFCS) increased its use in foods consumed in Canada. METHODS: We used supply data from the Food and Agriculture Organization of the United Nations to assess changes in supply of caloric sweeteners including HFCS after NAFTA. We estimate the impact of NAFTA on supply of HFCS in Canada using an innovative, quasiexperimental methodology - synthetic control methods - that creates a control group with which to compare Canada's outcomes. Additional robustness tests were performed for sample, control groups and model specification. RESULTS: Tariff reductions in NAFTA coincided with a 41.6 (95% confidence interval 25.1 to 58.2) kilocalorie per capita daily increase in the supply of caloric sweeteners including HFCS. This change was not observed in the control groups, including Australia and the United Kingdom, as well as a composite control of 16 countries. Results were robust to placebo tests and additional sensitivity analyses. INTERPRETATION: NAFTA was strongly associated with a marked rise in HFCS supply and likely consumption in Canada. Our study provides evidence that even a seemingly modest change to product tariffs in free trade agreements can substantially alter population-wide dietary behaviour and exposure to risk factors.

Suggested Citation

  • Barlow, Pepita & McKee, Martin & Basu, Sanjay & Stuckler, David, 2017. "Impact of the North American free trade agreement on high-fructose corn syrup supply in Canada: a natural experiment using synthetic control methods," LSE Research Online Documents on Economics 102665, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:102665
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    Cited by:

    1. Bidisha Lahiri & Anurag Deb, 2022. "Impact of the Indian “demonetization” policy on its export performance," Empirical Economics, Springer, vol. 62(6), pages 2799-2825, June.
    2. Michele Baggio & Alberto Chong, 2020. "Free trade agreements and world obesity," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 30-49, July.
    3. Giuntella, Osea & Rieger, Matthias & Rotunno, Lorenzo, 2020. "Weight gains from trade in foods: Evidence from Mexico," Journal of International Economics, Elsevier, vol. 122(C).
    4. Unar-Munguía, Mishel & Monterubio Flores, Eric & Colchero, M.A., 2019. "Apparent consumption of caloric sweeteners increased after the implementation of NAFTA in Mexico," Food Policy, Elsevier, vol. 84(C), pages 103-110.
    5. Barlow, Pepita, 2018. "Does trade liberalization reduce child mortality in low- and middle-income countries? A synthetic control analysis of 36 policy experiments, 1963-2005," LSE Research Online Documents on Economics 102664, London School of Economics and Political Science, LSE Library.
    6. Barlow, Pepita & Loopstra, Rachel & Tarasuk, Valerie & Reeves, Aaron, 2020. "Liberal trade policy and food insecurity across the income distribution: an observational analysis in 132 countries, 2014–17," LSE Research Online Documents on Economics 105815, London School of Economics and Political Science, LSE Library.
    7. Barlow, Pepita & Loopstra, Rachel & Tarasuk, Valerie & Reeves, Aaron, 2020. "Liberal trade policy and food insecurity across the income distribution: an observational analysis in 132 countries, 2014–17," LSE Research Online Documents on Economics 104409, London School of Economics and Political Science, LSE Library.
    8. Barlow, Pepita & Sanap, Rujuta & Garde, Amandine & Winters, L. Alan & Mabhala, Mzwandile A. & Thow, Anne Marie, 2022. "Reassessing the health impacts of trade and investment agreements: a systematic review of quantitative studies, 2016–20," LSE Research Online Documents on Economics 113791, London School of Economics and Political Science, LSE Library.
    9. Adu, Derick T. & Li, Wenying & Sawadgo, Wendiam P.M., 2023. "Estimating the unintended impact of the North American free trade agreement on U.S. public health," Social Science & Medicine, Elsevier, vol. 333(C).
    10. van Schalkwyk, May C.I. & Barlow, Pepita & Siles-Brügge, Gabriel & Jarman, Holly & Hervey, Tamara & McKee, Martin, 2021. "Brexit and trade policy: an analysis of the governance of UK trade policy and what it means for health and social justice," LSE Research Online Documents on Economics 110261, London School of Economics and Political Science, LSE Library.

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    JEL classification:

    • N0 - Economic History - - General

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