U.S.-MEXICO Sugar Dispute: Impact of Nafta on the Sugar Market (original) (raw)
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Analysis of the US-Mexico Sugar Trade-10 Years of NAFTA Regime and 10 Years from Now
2004 Annual meeting, …, 2004
The U.S.-Mexico sugar trade was examined, paying a close attention to the provisions of North American Free Trade Agreement (NAFTA) and the circumstances surrounding the industries of the two countries. Quantitative analyses provided the outlook of the future sugar market and shed light on the political implications.
The sugar sector is one of the most heavily protected commodities in agriculture using a system of tariff rate quotas (TRQs) with a complex set of administration procedures. General equilibrium models are not suitable to analyze trade liberalization scenarios that involve numerous tariff-rate quotas across narrowly defined product lines. We use the Rutherford/Grant/Hertel modeling approach by embedding a detailed, partial equilibrium (PE) model into a standard, global general equilibrium (GE) framework. We use this PE/GE model to compare trade and welfare outcomes of two liberalization scenarios: Increasing quota levels by 25% and cutting over tariffs by 50%, versus increasing quota levels by 50% and cutting over-quota tariffs by 25%. We find that lowering over-quota tariffs relatively more has more positive welfare effects than increasing quota levels relatively more.
A Partial Equilibrium Analysis of NAFTA's Impact on U.S. Bilateral Trade
International Journal of Economic Sciences and Applied Research, 2014
This paper examines the effects of the North American Free Trade Agreement on agricultural commodity trade using extensive data. The data cover agricultural exports and imports between the U.S. and NAFTA partners over the extended period of 1989-2010. The commodities covered in the analyses include; corn, soy bean, cotton, wheat, fresh vegetables, poultry, dairy products, and red meats. A partial equilibrium model, in which we derive each trading partner's excess demand and excess supply, is used to study the impact of NAFTA on trade, controlling for other trade-inducing variables such as exchange rates, tariffs, per capita incomes, and relative prices. Regression results show mixed effects of NAFTA on different commodities while graphical and counterfactual analyses indicate strictly positive effects.
The Impact of NAFTA on Agricultural Commodity Trade: A Partial Equilibrium Analysis
Southern Agricultural Economics Association annual meeting, Birmingham, Alabama, 2012
This paper examines the effects of the North American Free Trade Agreement on agricultural commodity trade using extensive data. The data cover agricultural exports and imports between the US and NAFTA partners over the extended period of 1989-2010. The commodities covered in our analyses include; corn, soy bean, cotton, wheat, fresh vegetables, poultry, dairy products, and red meats. Since the signing of the agreement, US total agricultural commodity trade with NAFTA members has increased three-fold from $18 ...
A Determination of Factors Influencing Sugar Trade
2019
A variety of factors influence U.S. sugar imports. Although the U.S. tariff-rate import quota restricts trade, other factors also influence sugar trade. In order to determine the impact of the U.S. tariff rate quota and other factors on sugar trade, this analysis adapts the standard gravity model for a single-commodity. Estimation of the model is carried out using panel data and includes the Unites States and 13 western hemisphere countries. Variables are chosen to augment the standard gravity model in order to identify and capture the effects of transactional costs and productivity on the sugar industry. This research demonstrates that although quotas have been important in determining U.S. sugar imports, relative factor endowments, domestic production, and free trade agreements are key factors influencing sugar trade.
A Free Trade Area of the Americas: Any Gains for the South
… the Third Workshop of the Regional Integration …, 2003
Building on the experience of NAFTA, and assuming that rules of origin (RoO) negotiated under NAFTA are likely to resemble those that would be agreed upon in an FTAA, this paper discusses how different RoO criteria would affect different Southern partners in a multi-stage production setting. Next, we use a combination of parametric and non-parametric methods to estimate the costs of RoO under NAFTA for Mexican exports to US based on NAFTA's utilization rates and preference margins in the US market, at the HS-6 level. Finally, we carry out illustrative simulations for Southern producers to estimate the levels of RoO and tariff preference which leaves these producers indifferent to exporting to Northern members under the regional preferential tariff rate or the MFN rate.
Winners and Losers in the World Sugar Market due to Trade Liberalisation in the EU Sugar Sector
The ongoing trade negotiations, unilateral trade concessions and obligations under the World Trade Organization (WTO) are pushing the EU sugar regime to undertake reforms. These reforms will alter the positions of developing countries in the global sugar markets. Gradual changes within the tariff rate quotas in the EU sugar regime would have a very marginal impact on the flow of sugar exports to the EU and world sugar markets as well. The simulation results showed that the scheduled changes in tariff rate quotas and transition period are stalling the impacts of tariff liberalisation granted by the Everything But Arms (EBA) concession. Small concessions will not threaten the EU internal market, but total liberalisation of sugar imports from the least developed countries (LDCs) will be a major threat to the EU sugar regime. Conversely, the EU would gain from the liberalisation scenarios in welfare terms due to cheaper imports of sugar. The current regime limits sugar imports from all developing countries or some efficient producers, if the cost data is a right estimate of the potential supply response from developing countries. The supply responses, which strongly affect the outcomes, are dependent on both the nature of substitution for sugar as well as on the efficiency of sugar production in different countries. The LDCs would be the major winners under the EBA concession supported by the unchanged EU sugar regime, but if the current regime is entirely liberalised, much of the gains are diluted due to the deterioration in the terms of trade and a few efficient sugar producers would be the winners. The multi-region and multi-sector general equilibrium framework (GTAP model) is used for this analysis.