Effects of the North American Free Trade Agreement of the rice industries of the U.S. and Mexico /
Rice is an import part of the agricultural sectors of the U.S. and Mexico. The U.S. is one of the world's largest rice exporters, sending rice to over 100 countries worldwide. Mexico, due to increasing rice demand and stagnant domestic rice production, has become the single largest export des...
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| Format: | Thesis Book |
| Language: | English |
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[Place of publication not identified] :
[publisher not identified] ;
2003.
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| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=765102271&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | Rice is an import part of the agricultural sectors of the U.S. and Mexico. The U.S. is one of the world's largest rice exporters, sending rice to over 100 countries worldwide. Mexico, due to increasing rice demand and stagnant domestic rice production, has become the single largest export destination for U.S. rice. Mexico has primarily imported rough rice over the past decade due to the high tariff differential between rough and milled rice. However, under NAFTA, tariffs on both rough and milled rice will be eliminated. Little information regarding the particular effects of NAFTA on the supply, demand, and trade of rice within the U.S. and Mexico is available. This study provided that information. The study provided a qualitative assessment of the factors affecting the supply, demand, and trade structure of the U.S. and Mexican rice markets. A conceptual model was developed to measure key determinants of U.S. and Mexican supply, demand, and trade as identified in the qualitative assessment. An econometric model of the U.S. and Mexican rice markets based on the conceptual model was constructed, estimated, and validated. Finally, simulation analyses were performed utilizing the econometric model to determine the past, present, and possible future effects of NAFTA under various scenarios regarding key exogenous factors. Simulation analyses indicate that while NAFTA has had a positive influence on total Mexican rice imports from the U.S., rough rice imports have been and are expected to be negatively impacted by NAFTA over the next decade. Nevertheless, increases in Mexican milled rice imports from the U.S. more than offset rough rice import decreases. Due to NAFTA, Mexican milled rice imports from the U.S. were 28% greater from 1994 through 1999. Over the next decade, they are anticipated to be 71% greater than would have been expected had the agreement not been enacted. The sharp devaluation of the Mexican peso in 1994 has had a large negative impact on Mexican rice imports from the U.S. The Mexican peso devaluation is the reason Mexican rice imports from the U.S. have not shifted from rough to milled form as researchers predicted prior to the agreement. |
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| Item Description: | Vita. "Major Subject: Agricultural Economics". |
| Physical Description: | xi, 144 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 138-143). |