Horticultural trade under NAFTA: Will it hurt US farm businesses?

Aditi K. Angirasa and Bob Davis
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Aditi K. Angirasa: Department of Agriculture, Southwest Texas State University, San Marcos, TX, Postal: Department of Agriculture, Southwest Texas State University, San Marcos, TX
Bob Davis: Department of Agriculture, Southwest Texas State University, San Marcos, TX, Postal: Department of Agriculture, Southwest Texas State University, San Marcos, TX

Agribusiness, 1996, vol. 12, issue 1, 15-25

Abstract: The argument that NAFTA will hurt US growers of horticultural crops because of increased Mexican exports was evaluated. The evaluation was based on the analysis of Mexico's potential physical production capacity and domestic demand for horticultural products, the nature of US import demand, and the macroeconomic policies of the two countries. The analysis showed that, in the short run, NAFTA's built-in safeguards and parallel agreements would protect US growers' interests. In the long run, Mexico's ability to expand production to meet both increasing domestic and export demand would be limited. In fact, Mexico may face a demand reversal and end up importing horticultural products from the US. © 1996 John Wiley & Sons, Inc.

Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:12:y:1996:i:1:p:15-25

DOI: 10.1002/(SICI)1520-6297(199601/02)12:1<15::AID-AGR2>3.0.CO;2-S

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