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Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement

Elijah Kosse and Stephen Devadoss

No 252726, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: This study develops a three-county trade model of the United States, Mexico, and Canada to analyze the effects of the 2013 Suspension Agreement on prices, production, consumption, trade flows, and welfare in each country due to the U.S. minimum import price on Mexican tomatoes. While only the United States and Mexico are signatories to the agreement, Canada was also included since the U.S. minimum price distorts prices across the region. Three tomato categories—field, greenhouse, and cherry & grape—are studied since each has a distinct minimum price. The overall welfare effects are positive for Mexico and Canada, but negative for the United States.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-int
Date: 2016
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