 MEXICAN-U.S. FRESH TOMATO TRADE: AN ANALYSIS OF VOLUME, PRICES AND TRANSACTION COSTSLuz E. Padilla-Bernal and Dawn Thilmany No 36445, 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia from Western Agricultural Economics Association Abstract: Tomato trade between the U.S. and Mexico has grown significantly during the past decade. Although the tariff reductions accorded under NAFTA may explain part of his increase, there are other supply and demand factors that affect trade flows. This study develops a U.S.-Mexico tomato trade model, with special focus on the interdependence between trading costs and the volume of Mexican imports. As expected, the exchange rate is a significant determinant of trading costs, but the level of tariffs was insignificant in both the trading and tomato supply equations. The shipping point price level and volume of imports also appear to affect these costs. For the import supply and demand models, there appears to be a significant share of imports that rely on previous levels of imports, rather than the expected economic factors (prices, income, and producer price index). We conclude that the structure and performance of the tomato trading market is changing, and may be more influential than tariff reductions in explaining increased trade flows. Keywords: Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:waeava:36445 Access Statistics for this paper More papers in 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia from Western Agricultural Economics Association Contact information at EDIRC. |
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