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Trade Liberalizing Impacts of NAFTA in Sugar: Global Implications

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  • Knutson, Ronald D.
  • Westhoff, Patrick C.
  • Sherwell, Pablo

Abstract

In 2008, the NAFTA provisions opened the U.S. market for sugar imports from Mexico. The FAPRI U.S. agriculture sector model and the Mexican agriculture sector model were utilized simultaneously to analyze the implications for agribusiness interests of free trade with Mexico in sugar. It was found that the dire predictions of U.S. producer interests would not materialize. The economic impacts were much less than had been predicted. It was found that even with free trade, U.S. and Mexican sugar prices do not move in lockstep.

Suggested Citation

  • Knutson, Ronald D. & Westhoff, Patrick C. & Sherwell, Pablo, 2010. "Trade Liberalizing Impacts of NAFTA in Sugar: Global Implications," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(4), pages 1-16.
    • Handle: RePEc:ags:ifaamr:96338
    DOI: 10.22004/ag.econ.96338
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    References listed on IDEAS

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    1. Meyers, William H. & Westhoff, Patrick & Fabiosa, Jacinto F. & Hayes, Dermot J., 2010. "The FAPRI Global Modeling System and Outlook Process," Staff General Research Papers Archive 31534, Iowa State University, Department of Economics.
    2. Beghin, John C. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Fuller, Frank H. & Hart, Chad E. & Kovarik, Karen P. & Tokgoz, Simla & Yu, Tun-Hsiang & Wailes, Eric J. & Chavez, Edward & Woma, 2007. "FAPRI 2007 U.S. And World Agricultural Outlook," Staff General Research Papers Archive 12805, Iowa State University, Department of Economics.
      • Beghin, John C. & Dong, Fengxia & Elobeid, Amani E. & Fabiosa, Jacinto F. & Fuller, Frank H. & Hart, Chad E. & Kovarik, Karen & Tokgoz, Simla & Yu, Tun-Hsiang (Edward) & Wailes, Eric J. & Chavez, Eddi, 2007. "FAPRI 2007 U.S. and World Agricultural Outlook," FAPRI Staff Reports 7296, Food and Agricultural Policy Research Institute (FAPRI).
    3. Westhoff, Patrick C., 2008. "Farm Commodity Prices: Why the Boom and What Happens Now?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(2), pages 1-5.
    4. Wells, Hodan Farah & Buzby, Jean C., 2008. "High-Fructose Corn Syrup Usage May Be Leveling Off," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-1, February.
    5. Gwo-Jiun M. Leu & Andrew Schmitz & Ronald D. Knutson, 1987. "Gains and Losses of Sugar Program Policy Options," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 591-602.
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    Cited by:

    1. Troy G. Schmitz, 2018. "Impact of the 2014 Suspension Agreement on sugar between the United States and Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 55-69, January.
    2. Schmitz, Troy G. & Lewis, Karen E., 2015. "Impact of NAFTA on U.S. and Mexican Sugar Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), pages 1-18, September.
    3. Whistance, Jarrett & Payen, Andrick & Thompson, Wyatt, 2015. "Suspension Agreements and Antidumping/Countervailing Duties: US-Mexico Sugar Markets and the Effects of Alternative Trade Policies," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205550, Agricultural and Applied Economics Association.
    4. Carlos J. O. Trejo-Pech & Karen L. DeLong & Dayton M. Lambert & Vasileios Siokos, 2020. "The impact of US sugar prices on the financial performance of US sugar-using firms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-17, December.

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