EFFECT OF LIBERALIZED U.S.-MEXICO DRY ONION TRADE: A SPATIAL AND INTERTEMPORAL EQUILIBRIUM ANALYSIS

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

Journal of Agricultural and Applied Economics, 1996, vol. 28, issue 01, 13

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.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:joaaec:15222

DOI: 10.22004/ag.econ.15222

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