Keywords: agricultural prices, domestic prices, international trade, bilateral trade flows, agricultural exports, Mexico, USA, United States, NAFTA, vegetables, North American Free Trade Agreement, Mexican exports
Mexican agricultural exports: effect on trade flows and prices in the USA under NAFTA
The objectives of this study are to determine the factors that affect trade flows of selected vegetables from Mexico to the USA and to evaluate the impacts of Mexican agricultural exports on the US domestic price of these commodities. Major factors affecting trade flows of these commodities from Mexico to the USA include the exchange rate, differences in market size, domestic supply and consumption and trade liberalisation under the North American Free Trade Agreement (NAFTA) of 1994. These factors have contributed to increased Mexican exports of agricultural commodities to the USA. The increased Mexican exports have resulted in reduced US domestic prices.