Estimated Impacts of a Potential U.S.-Mexico Preferential Trading Agreement for the Agricultural Sector

Barry Krissoff, Liana Neff and Jerry A. Sharples

No 51135, Working Papers from International Agricultural Trade Research Consortium

Abstract: We develop a three region - U.S., Mexico, and Rest-of-World - simulation model to analyze the effects on the agricultural sector of a potential preferential trading arrangement (PTA) between Mexico and the United States. The simulation exercises indicate that two-way agricultural trade increases and welfare improves in the United States and Mexico from a bilateral preferential agreement on agricultural products. Our results show that when border protection is eliminated by the United States and Mexico, bilateral agricultural trade expands by over 15 percent. Relative to the size of the two agricultural sectors, however, the overall impact is very small for the U.S. agricultural sector but there is a more significant adjustment for Mexican agriculture.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 43
Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/51135/files/92-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iatrwp:51135

DOI: 10.22004/ag.econ.51135

Access Statistics for this paper

More papers in Working Papers from International Agricultural Trade Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().