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Briefing Rooms

North American Free Trade Agreement (NAFTA): Recommended Readings

Contents
 

Increased U.S. Imports of Fresh Fruit and Vegetables have allowed U.S. consumers to eat more fruit and vegetables and enjoy year-round access to various fresh produce. Primary suppliers are the North American Free Trade Agreement region for fresh vegetables, the Southern Hemisphere countries for off-season fresh fruit, and equatorial countries for bananas.

North American Agricultural Market Integration and Its Impact on the Food and Fiber System reviews the increasing integration of agricultural markets in Canada, Mexico, and the United States that has resulted in more efficient use of continental resources. NAFTA, technological change, and fundamental forces of supply and demand have helped bring about a more unified North American agricultural market.

NAFTA at 13: Implementation Nears Completion evaluates the impact of the North American Free Trade Agreement (NAFTA) as implementation of the accord draws to a close. Just a handful of the agricultural trade restrictions scheduled to be phased out under NAFTA remain, and these are scheduled for elimination in 2008.  Once NAFTA is fully implemented, the member countries—Canada, Mexico, and the United States—will need to exercise their national autonomy, either individually or in concert, to achieve further integration of their agricultural markets.

North America Moves Toward One Market describes how the agricultural sectors of Canada, Mexico, and the United States are increasingly behaving as if they form a single market. For example, many livestock in North America have lived in at least two of these countries, and U.S. consumers are purchasing fresh produce from both Mexico and Canada. NAFTA at 11: The Growing Integration of North American Agriculture provides additional information on this subject, as it relates to the North American Free Trade Agreement (NAFTA).

Market Integration of the North American Animal Products Complex examines the economic integration of the beef, pork, and poultry industries of Mexico, Canada, and the United States over the past two decades. Sanitary barriers, which are designed to protect people and animals from diseases, are among the more significant barriers to more complete integration of meat and animal markets.

Recent Agricultural Policy Reforms in North America identifies countercyclical assistance as the common thread in the recent agricultural policy innovations of the United States, Mexico,and Canada. In other areas, the three countries are pursuing distinct agricultural policies, reflecting differing national objectives and economic contexts.

North American Greenhouse Tomatoes Emerge as a Major Market Force reviews the rapid growth of the greenhouse tomato industry in North American and its impact on the field tomato industry. Canada is the biggest producer, followed by the United States and Mexico. For the full report, see Greenhouse Tomatoes Change the Dynamics of the North American Fresh Tomato Industry.

NAFTA at 11: The Growing Integration of North American Agriculture reports that the agricultural sectors of Canada, Mexico, and the United States have become much more integrated in the 11 years since implementation of the North American Free Trade Agreement (NAFTA). U.S. feedstuffs have facilitated a marked increase in Mexican meat production and consumption, and the importance of Canadian and Mexican produce to U.S. fruit and vegetable consumption is also growing.

Global Trade Patterns in Fruits and Vegetables examines the domestic markets and trade experiences of major fruit and vegetable traders—including the NAFTA area—to better understand the economic and institutional factors affecting trade. With major advances in produce handling and transport, combined with trade agreements and changing consumers preferences as incomes rise, a more global market is providing consumers with greater year-round variety.

Multlateralism and Regionalism: Dual Strategies for Trade Reform reviews U.S. pursuit of trade liberalization through regional agreements such as NAFTA and the Free Trade Area of the Americas, and through multilateral negotiations via the World Trade Organization. Why does the United States do both simultaneously?

U.S.-Mexico Broiler Trade: A Bird's Eye View examines sanitary requirements and regulations governing the U.S.-Mexico broiler trade. A sensitivity analysis, using a cost-minimization mathematical programming model, detects minimal economic impact on the U.S. broiler market if Mexico is allowed to ship fresh, chilled, and frozen poultry to the United States.

Mexico's Changing Marketing System for Fresh Produce: Emerging Markets, Practices, Trends, and Issues takes a detailed look at recent changes in Mexico's fresh produce distribution system. The report identifies challenges that hinder the efficient distribution of fresh fruits and vegetables, as well as the implications for U.S. growers and shippers of fresh produce.

NAFTA's Impacts on U.S. Agriculture: Trade and Beyond concludes that NAFTA has generally benefited U.S. agriculture and related industries. NAFTA contributed to a more than doubling of U.S. agricultural trade with Canada and Mexico in the 1990s. Beyond direct trade impacts, NAFTA established rules and institutions that mitigate potential trade frictions, promote foreign direct investment, and facilitate discourse on environmental issues.

Effects of the North American Free Trade Agreement on Agriculture and the Rural Economy provides a commodity-level assessment of NAFTA's impact on U.S. agricultural trade with Canada and Mexico and evaluates its influence on investment and employment in agriculture and related industries. Also addressed are the relationship between trade liberalization and the environment and recent developments in U.S.-Mexico transportation.

The Changing Structure of Agricultural Trade in North America Pre- and Post-CUSTA/NAFTA: What Does It Mean? assesses U.S., Canadian, and Mexican agricultural trade since 1974. Analytical results indicate that recent changes in the makeup and direction of this trade have benefited consumers in the NAFTA region. Economic statistics in the analysis encompass U.S. market share, destination share, bilateral trade intensity, comparative advantage, distance, trade policies, and other factors. Applying the same methodology, Changing Agricultural Trade Patterns in North America provides more detailed information on trade in field crops and high-value, processed products.

Transportation Bottlenecks Shape U.S.-Mexico Food and Agricultural Trade illustrates how fast-growing trade has been accompanied by substantial traffic backups at major border crossings. Sizable investments have been made in border infrastructure, transportation systems, and customs operations. Progress in these areas will determine the pace of future growth in trade, as well as the extent to which trade travels by land, air, or sea.

Trade Liberalization: International Trade Agreements Bring Adjustment to the Textile and Apparel Industries indicates that, with the implementation of NAFTA and the GATT's 1995 Agreement on Textiles and Clothing, these sectors have experienced declining employment. This trend is highly important for rural America, since these industries often are located in non-metro countries. In response to these developments, the Federal Government has provided training, income support, and relocation allowances to affected workers.

U.S.-Mexico Sweetener Trade Mired in Dispute reviews disputes between the two countries over liberalizing sugar trade. The original text of NAFTA provides a formula for the gradual liberalization based on the projected difference between sugar production and consumption in both countries. However, a Side Letter to NAFTA modifies this process somewhat. Unfortunately, Mexico and the United States subscribe to different versions of the Side Letter, each with distinct provisions for liberalizing U.S.-Mexico sugar trade. This issue has important implications for U.S.-Mexico sugar trade and for U.S. sugar policy.

Pesticide Price Differentials Between Canada and the U.S. compares pesticide markets in the States of Minnesota and North Dakota and the Canadian provinces of Manitoba and Saskatchewan. The study reveals a complex pattern in which price differences, pesticide expenditures, and pesticide use vary by province and state. Some pesticides are cheaper in Canada, while others are cheaper in the United States. This pattern is largely the result of regional differences in supply and demand.

For more information, contact: Steven Zahniser

Web administration: webadmin@ers.usda.gov

Updated date: September 26, 2007