Volume 4, No. 1, April 2005


Impact of NAFTA on U.S. Corn Trade with Mexico
A. A. Farhad Chowdhury
Department of Business, Mississippi Valley State University, U.S.A.
Albert J. Allen
Department of Agricultural Economics, Mississippi State University, U.S.A.
The objective of this paper is to assess the impact of NAFTA vis-à-vis other domestic and environmental forces in corn trading between the U.S. and Mexico. Regression analysis could not provide conclusive evidence that the post-NAFTA increase in corn trade was solely due to NAFTA. Severe drought in Mexico and its domestic policy reforms may have contributed to the increased volume of corn trade in the post-NAFTA era.
Key words: NAFTA; tariff barriers; tariff-rate quota; labor-output coefficients
JEL classification: F13