By:By:Tracy Brandenberger,Tracy Brandenberger,

Rahul Ramdas, &Rahul Ramdas, &Kelsey SpillmannKelsey Spillmann

North North AmericanAmerican Free Trade Free Trade AgreementAgreement

What is What is NAFTANAFTA??

• Trade pact that took into effect January 1, 1994 that was intended Trade pact that took into effect January 1, 1994 that was intended to gradually to gradually eliminate most tariffseliminate most tariffs and other trade barriers on and other trade barriers on products and services passing between the United States, products and services passing between the United States, Canada , and Mexico.Canada , and Mexico.

• The pact has lead to much debate and protest from all sides, The pact has lead to much debate and protest from all sides, predominantly Mexican farmers and American factory workers. predominantly Mexican farmers and American factory workers. Current debates about NAFTA are focussed around the expansion Current debates about NAFTA are focussed around the expansion of NAFTAof NAFTA

• The pact has effectively created a free-trade bloc among the three The pact has effectively created a free-trade bloc among the three

largest countries of North America, covering a region of nearly 400 largest countries of North America, covering a region of nearly 400 million people that produces over million people that produces over $8 trillion$8 trillion in goods and services. in goods and services.

• The majority of industries in the United States, Canada, and The majority of industries in the United States, Canada, and Mexico have benefited from NAFTA. Mexico have benefited from NAFTA.

EFFECTS ON THE UNITED EFFECTS ON THE UNITED STATESSTATES

UUnniitteedd S Sttaatteess and M and Meexxiiccoo

•Two-way agricultural trade between Two-way agricultural trade between the United States and Mexico the United States and Mexico

•Since NAFTA was iniated in 1994…Since NAFTA was iniated in 1994…

•Types of Exports to MexicoTypes of Exports to Mexico

•What is has done?What is has done?

UUnniitteedd S Sttaatteess and C and Caannaaddaa

•Two-way agricultural trade between Two-way agricultural trade between the United States and Canadathe United States and Canada

•Since implementation of the U.S. Since implementation of the U.S. Canada Free Trade Agreement…Canada Free Trade Agreement…

•Types of ExportsTypes of Exports

NAFTA: NAFTA: THE GOODTHE GOOD AND AND THE BADTHE BAD FOR THE UNITED STATESFOR THE UNITED STATES

• While NAFTA has increased gross U.S. While NAFTA has increased gross U.S. exports, imports have increased as wellexports, imports have increased as well

• While U.S. markets such as electronics, While U.S. markets such as electronics, clothing, and pharmaceuticals have clothing, and pharmaceuticals have increased, certain U.S. Horticultural increased, certain U.S. Horticultural markets have suffered due to open markets have suffered due to open trade with Canada and Mexicotrade with Canada and Mexico

Effects of Effects of NAFTANAFTA on U.S. on U.S. MarketsMarkets

• The “Bad”The “Bad”

• Florida – TomatoFlorida – Tomato

• California – AvocadoCalifornia – Avocado

• The “Good”The “Good”

• Washington – AppleWashington – Apple

• California - CherryCalifornia - Cherry

Florida and the TomatoFlorida and the Tomato

• The Florida Horticultural industry exports commodities such as The Florida Horticultural industry exports commodities such as tomatoes, sugar cane, bell peppers, cucumbers, eggplant, snap tomatoes, sugar cane, bell peppers, cucumbers, eggplant, snap beans, and squash beans, and squash

• 80 Florida tomato growers produce 80 Florida tomato growers produce

about 1.6 billion pounds, $400 million about 1.6 billion pounds, $400 million

worth, of tomatoes from 50,000 worth, of tomatoes from 50,000

acres annually acres annually

• The Florida Horticultural industry has been the most outspoken The Florida Horticultural industry has been the most outspoken agricultural opponent of NAFTA thus far, with great deals of agricultural opponent of NAFTA thus far, with great deals of opposition coming from Floridian tomato growersopposition coming from Floridian tomato growers

Tomato Tomato TroubleTrouble

Since the development of NAFTA, imports have accounted Since the development of NAFTA, imports have accounted for 32 percent of fresh tomato consumption in the U.S. in for 32 percent of fresh tomato consumption in the U.S. in 1999 up from 19 percent in 19941999 up from 19 percent in 1994

• Within the first few years of the implementation of NAFTA, Within the first few years of the implementation of NAFTA, Mexico, with an ideal soil and climate for producing Mexico, with an ideal soil and climate for producing tomatoes, began to sell increasing quantities to American tomatoes, began to sell increasing quantities to American consumers causing tomato prices to fallconsumers causing tomato prices to fall

HOWEVERHOWEVER

• People were buying People were buying moremore Mexican tomatoes and Mexican tomatoes and fewerfewer Floridian tomatoes, resulting in the loss of Floridian tomatoes, resulting in the loss of 150 Floridian 150 Floridian tomato growers.tomato growers.

Proponents for MexicoProponents for Mexico

Americans get cheaper tomatoes under free Americans get cheaper tomatoes under free trade, they get better ones. In the winter, Florida trade, they get better ones. In the winter, Florida growers harvest tomatoes while they’re still growers harvest tomatoes while they’re still green and ripen them artificially using ethylene green and ripen them artificially using ethylene gas. gas.

• ““Mexican tomatoes taste better and last longer Mexican tomatoes taste better and last longer because they are vine ripened.“because they are vine ripened.“

- Consumers for World Trade, a pro-trade - Consumers for World Trade, a pro-trade

consumer advocacy group consumer advocacy group

Proponents for FloridaProponents for Florida

NAFTA is on its way to destroying an entire NAFTA is on its way to destroying an entire industry. It has boosted Mexico’s economy at the industry. It has boosted Mexico’s economy at the expense of U.S. farmers. expense of U.S. farmers.

• ““The development of exports of one country The development of exports of one country should not be aimed at harming to the productive should not be aimed at harming to the productive capacity of another, while adhering to the capacity of another, while adhering to the commitments made in NAFTA." commitments made in NAFTA."

- Secretary of Agriculture, Dan Glickman - Secretary of Agriculture, Dan Glickman

The ResultThe Result

• In 1996, Florida tomato growers fought for and won protection In 1996, Florida tomato growers fought for and won protection against Mexican tomato importsagainst Mexican tomato imports

• In response to Florida grower protests, the US government took In response to Florida grower protests, the US government took three steps to slow down the implementation of NAFTA's free three steps to slow down the implementation of NAFTA's free trade provisions with Mexico trade provisions with Mexico

• 1- Indefinitely postponed cross-border trucking 1- Indefinitely postponed cross-border trucking

• 2- Proposed to shift to a weekly measure of Mexican tomato 2- Proposed to shift to a weekly measure of Mexican tomato imports. If Mexican shipments exceeded a weekly quota, a 2.5 imports. If Mexican shipments exceeded a weekly quota, a 2.5 percent tariff would be leviedpercent tariff would be levied

• 3- Supported efforts to define Florida winter vegetables as an 3- Supported efforts to define Florida winter vegetables as an "industry" so that growers there can more easily petition for relief "industry" so that growers there can more easily petition for relief from trade injury from trade injury

The ResultThe Result

• The U.S. Commerce Department brokered a deal that set a The U.S. Commerce Department brokered a deal that set a floor price on Mexican tomatoes.floor price on Mexican tomatoes.

• Along with a price floor the Commerce Department Along with a price floor the Commerce Department established two different tomato sales seasons each with a established two different tomato sales seasons each with a separate reference price.separate reference price.

• 11stst Season : California and Baja, Mexico spanning from July Season : California and Baja, Mexico spanning from July 1 to 1 to October 22 ($4.30 per 25-lb box) October 22 ($4.30 per 25-lb box)

• 22ndnd Season : Florida and Sinaloa, Mexico spanning from Season : Florida and Sinaloa, Mexico spanning from October October 23 to June 30 23 to June 30 with a higher floor price ($5.27 per 25-with a higher floor price ($5.27 per 25- lb box). lb box).

California and the AvocadoCalifornia and the Avocado

• California is the world’s California is the world’s second largest producer of second largest producer of avocados, accounting for avocados, accounting for about 15 percent of global about 15 percent of global production. Almost all U.S. production. Almost all U.S. production is the Hass production is the Hass variety.variety.

• Mexico is the world’s Mexico is the world’s largest producer of largest producer of avocados, with an annual avocados, with an annual production varying production varying between 700 and 900 between 700 and 900 thousand tons.thousand tons.

Ban on Mexican AvocadosBan on Mexican Avocados

• The importation of fresh avocados was banned The importation of fresh avocados was banned by the United States in 1914 after U.S. plant by the United States in 1914 after U.S. plant health officials identified avocado seeds in health officials identified avocado seeds in Mexican orchards as pestsMexican orchards as pests

• In the 1990’s bilateral negotiations were In the 1990’s bilateral negotiations were conducted with the sanitary and phytosanitary conducted with the sanitary and phytosanitary provision of NAFTA for the importation of provision of NAFTA for the importation of Mexican avocadosMexican avocados

Indicators of Trouble for Indicators of Trouble for CaliforniaCalifornia

• With the approval of certain provisions of NAFTA in 1997, free trade between U.S. and With the approval of certain provisions of NAFTA in 1997, free trade between U.S. and Mexican avocados began to be permitted, causing a problem for California Avocado Mexican avocados began to be permitted, causing a problem for California Avocado producers.producers.

Mexican AdvantagesMexican Advantages

• Mexican yields vary from seven to nine metric tons per hectare.Mexican yields vary from seven to nine metric tons per hectare.

• In Michoacan normal rainfall is sufficient for production and only about half of the In Michoacan normal rainfall is sufficient for production and only about half of the groves are irrigated. groves are irrigated.

Californian DisadvantagesCalifornian Disadvantages

• Avocado production requires large amounts of water, which must be obtained from Avocado production requires large amounts of water, which must be obtained from relatively expensive irrigation water in California. relatively expensive irrigation water in California.

• California yields are reported to be somewhat lower at about five metric tons per California yields are reported to be somewhat lower at about five metric tons per hectare.hectare.

The ResultThe Result

In February, 1997, APHIS published the final rule that allowed the importation of Hass avocados from the Mexican state of Michoacán into 19 Northeastern U.S. states and the District of Columbia from

November to February.

The ResultThe Result

• Estimated Estimated Californian grower Californian grower losses ranging from losses ranging from $1.4 to $6.4 million $1.4 to $6.4 million per producer.per producer.

• Consumer gains Consumer gains ranging from $3.3 ranging from $3.3 to $19 millionto $19 million

California and the CherryCalifornia and the Cherry

• The United States is a net-exporter The United States is a net-exporter of sweet cherries.of sweet cherries.

• Nearly 37.7 percent of total U.S. Nearly 37.7 percent of total U.S. cherry exports originated in cherry exports originated in California in 2001. California in 2001.

• Total U.S. exports reached the Total U.S. exports reached the value of $165.5 million in 2001, up value of $165.5 million in 2001, up 102 percent since the 102 percent since the implementation of NAFTA.implementation of NAFTA.

Washington and the AppleWashington and the Apple

• Since NAFTA, the Apple Since NAFTA, the Apple industry has become the industry has become the biggest horticultural biggest horticultural export from the U.S. to export from the U.S. to CanadaCanada

• Effective January 1, Effective January 1, 2003, the import tariff 2003, the import tariff on U.S. and Canadian on U.S. and Canadian apples was eliminated apples was eliminated as required under the as required under the North American Free North American Free Trade Agreement Trade Agreement (NAFTA).(NAFTA).

Overall Imports From Canada and Mexico

Overall Imports From Canada and Mexico

Effects on Canadian Effects on Canadian HorticultureHorticulture

History of Agriculture and History of Agriculture and HorticultureHorticulture

AgricultureAgriculture

• 22ndnd largest natural resource industry largest natural resource industry• Food sector is 2Food sector is 2ndnd largest largest

manufacturing sectormanufacturing sector• Farm population and area has Farm population and area has

decreased decreased • Top SectorsTop Sectors

1.1. LivestockLivestock2.2. GrainGrain3.3. HorticultureHorticulture

• Provides jobs to 1 in 7 CanadiansProvides jobs to 1 in 7 Canadians

Regional ProductionRegional Production

• Maritimes-Maritimes-– Diversified farmsDiversified farms– Livestock and dairy orientedLivestock and dairy oriented

• Western Quebec and Eastern OntarioWestern Quebec and Eastern Ontario– Primarily dairyPrimarily dairy– Produces most of Canada’s milk and cheeseProduces most of Canada’s milk and cheese

• Southwestern OntarioSouthwestern Ontario– FeedlotsFeedlots– Specialty fruits and vegetablesSpecialty fruits and vegetables

• Northern OntarioNorthern Ontario– Sparsely scattered dairy and livestockSparsely scattered dairy and livestock

Canadian LandCanadian Land

• 904 hectacres of land in country904 hectacres of land in country• Half is tundra and rockHalf is tundra and rock• 28% is forest –cannot be used for ag.28% is forest –cannot be used for ag.• 13% is available for agriculture uses13% is available for agriculture uses

– 18% is suitable for field crops18% is suitable for field crops– Remainder is graze landRemainder is graze land

• 0.4% is occupied by cities, roads and 0.4% is occupied by cities, roads and other man made objectsother man made objects

Prairie ProvincesPrairie Provinces

• AlbertaAlberta– LivestockLivestock

• ManitobaManitoba– Diverse farmsDiverse farms

• SaskatchewanSaskatchewan– WheatWheat

• British ColumbiaBritish Columbia– Livestock in northLivestock in north– Specialty cropsSpecialty crops

HorticultureHorticulture

• Represents $4.6 billion annuallyRepresents $4.6 billion annually• 14.4% of all Farm Cash Receipts (FCR)14.4% of all Farm Cash Receipts (FCR)• FCR’s are up 16% from 2000FCR’s are up 16% from 2000• Ranked 3Ranked 3rdrd in ag sectors, behind in ag sectors, behind

livestock and grainslivestock and grains• Exports $2.9 billion worth of productsExports $2.9 billion worth of products• Land area increased between 4 and Land area increased between 4 and

52% from ’91 to ’9652% from ’91 to ’96

Growth in Horticulture Growth in Horticulture

• Ornamental Industry experiencing Ornamental Industry experiencing the most growth.the most growth.

• Other current increases-Other current increases-– Greenhouse VegetablesGreenhouse Vegetables– Berries, Grapes, MaplesBerries, Grapes, Maples

Food Processing IndustryFood Processing Industry

• International and Domestic demand International and Domestic demand is increasing for Value Addedis increasing for Value Added

• Products demanded are frozen, Products demanded are frozen, canned, dried or juicedcanned, dried or juiced

• Since 1988Since 1988– Canning Operations have decreasedCanning Operations have decreased– Freeze Operations have increasedFreeze Operations have increased

Beyond the Farm Gate Beyond the Farm Gate

• Horticulture has 9 categories with farm Horticulture has 9 categories with farm gate values of more than $100 milliongate values of more than $100 million

• Floriculture tops the listFloriculture tops the list• Value of vegetables in 2000 $115 millionValue of vegetables in 2000 $115 million• Largest single crop in edible horticulture Largest single crop in edible horticulture

was potatowas potato– Growers experiencing unprecedented growthGrowers experiencing unprecedented growth– New state of the art processing facilitiesNew state of the art processing facilities– Large volumes of production are for foreign Large volumes of production are for foreign

marketsmarkets

Canadian Canadian Agricultural TradeAgricultural Trade

Canada & the U.S.Canada & the U.S.

• Canada-U.S. Agri-Food TradeCanada-U.S. Agri-Food Trade– Implemented in 1989Implemented in 1989– Increased trade 104% by 1994Increased trade 104% by 1994– 53% of Canadian food exports went to 53% of Canadian food exports went to

the US in ’94the US in ’94– 60% of Canadian imports came from US60% of Canadian imports came from US

Canada & the U.S.Canada & the U.S.

• NAFTANAFTA– Increased trade by 82% since 1993Increased trade by 82% since 1993– Trade reached $25.1 billion in 2000Trade reached $25.1 billion in 2000– U.S. is Canada’s largest exporterU.S. is Canada’s largest exporter

Canada & the U.S.Canada & the U.S.

• An example of crops that have An example of crops that have benefitedbenefited– HorticulturalHorticultural

•Tomatoes- increased 20-foldTomatoes- increased 20-fold

•Peppers and Lettuce- increased 7-foldPeppers and Lettuce- increased 7-fold

•Cucumbers-increased 6-foldCucumbers-increased 6-fold

– OilseedsOilseeds•Soybean oils- increased 7-foldSoybean oils- increased 7-fold

•Sunflower oil- quadrupledSunflower oil- quadrupled

Canada-Mexico TradeCanada-Mexico Trade

• Trade increased by 164% since 1993Trade increased by 164% since 1993

• Increased to $1.1 billion in 2000Increased to $1.1 billion in 2000

• Exports to Mexico tripled to $692Exports to Mexico tripled to $692

• Mexico purchases oats, canola, Mexico purchases oats, canola, wheat, dried beans, frozen wheat, dried beans, frozen vegetables, beef and frozen French vegetables, beef and frozen French fries.fries.

Hot House TomatoHot House Tomato• Tomatoes grown in aluminum or steel structure covered in Tomatoes grown in aluminum or steel structure covered in

glassglass

• Every aspect of growth is controlledEvery aspect of growth is controlled– HeatHeat– LightLight– NutrientsNutrients

• No herbicides and minimal pesticides are used because No herbicides and minimal pesticides are used because plants are grown hydroponicallyplants are grown hydroponically

• Exports of tomatoes has grown from 2 billion in 1991 to 106 Exports of tomatoes has grown from 2 billion in 1991 to 106 billion in 2001.billion in 2001.

• Majority of the tomatoes are still field grown because of Majority of the tomatoes are still field grown because of labor intensity of Hot House Tomatoes.labor intensity of Hot House Tomatoes.

The Canadian TomatoThe Canadian Tomato

• US tomato growers have complained that US tomato growers have complained that Canadian growers are selling their tomatoes too Canadian growers are selling their tomatoes too cheaply in US marketscheaply in US markets

• 1% of the 16 lbs /yr./person tomato consumption 1% of the 16 lbs /yr./person tomato consumption now comes from Canadanow comes from Canada

• Last year, the US increased the duty on tomatoes Last year, the US increased the duty on tomatoes to 30%to 30%

• Canadians have also filed a trade complaint of Canadians have also filed a trade complaint of their own against US tomatoes coming into their own against US tomatoes coming into Canada. Canada.

• Americans and Canadians are going back and forth Americans and Canadians are going back and forth in a biased battle of who thinks who is wrongin a biased battle of who thinks who is wrong

Floriculture, Nursery, & Christmas Floriculture, Nursery, & Christmas Trees Trees

• Account for 13% of cash receipts on crop Account for 13% of cash receipts on crop salessales

• In 2000…In 2000…– exported $409 million worth of floriculture and exported $409 million worth of floriculture and

nursery productsnursery products– Exported 2.5 million Christmas treesExported 2.5 million Christmas trees

• Main floriculture exports include roses, Main floriculture exports include roses, tulips, chrysanthemums, gerberas, lilies, tulips, chrysanthemums, gerberas, lilies, alstromeria, and snapdragons.alstromeria, and snapdragons.

The Canadian SpudThe Canadian Spud• Accounts for 33% of vegetable FCR’sAccounts for 33% of vegetable FCR’s

• 158,900 hectares of potatoes planted158,900 hectares of potatoes planted

• New fry plants opening, expected to increase exports New fry plants opening, expected to increase exports

• Over 50% of Canadian grown potatoes are processed into Over 50% of Canadian grown potatoes are processed into French friesFrench fries

• Canada exports continue to increase due to a favorable Canada exports continue to increase due to a favorable exchange rate, good product quality, proximity to Eastern & exchange rate, good product quality, proximity to Eastern & Midwestern markets and an increasing manufacturing capacity. Midwestern markets and an increasing manufacturing capacity.

Effects on Mexico’s Agricultural Effects on Mexico’s Agricultural IndustriesIndustries

1995 Recession in Mexico1995 Recession in Mexico

• Devalued the Peso by 50%Devalued the Peso by 50%– Exports became more competitiveExports became more competitive

• Exports to the US rose by $12 billionExports to the US rose by $12 billion– # of Imports decreased significantly# of Imports decreased significantly

• Larger percentage decrease from countries other than the Larger percentage decrease from countries other than the USUS

• Imports from US decreased by only $4 billionImports from US decreased by only $4 billion– NAFTA agreements NAFTA agreements – Co-production agreementsCo-production agreements

• NAFTA’s roleNAFTA’s role– Increased speed of recovery from the recessionIncreased speed of recovery from the recession– Provides confidence to investorsProvides confidence to investors– Acted as a stabilizerActed as a stabilizer

Effects on Mexico’s Effects on Mexico’s EconomyEconomy• Two way trade between the United States Two way trade between the United States

and Mexico rose 113 percent between and Mexico rose 113 percent between 1993 and 19981993 and 1998

• Mexico has bypassed South Korea to Mexico has bypassed South Korea to become 7become 7thth largest exporter largest exporter

• Mexico has become the second largest Mexico has become the second largest trading partner with the U.S.trading partner with the U.S.

WHEATWHEAT

• Mexico has become the third largest wheat importer from the Mexico has become the third largest wheat importer from the U.S after Egypt and JapanU.S after Egypt and Japan

• Mexico’s wheat imports grew 48% over the past 5 years Mexico’s wheat imports grew 48% over the past 5 years – Mexico imports more in years with poor weather/productionMexico imports more in years with poor weather/production– Mexico lifted price controls and subsidies on wheat products but Mexico lifted price controls and subsidies on wheat products but

not corn products in 1995not corn products in 1995

• Tariffs on wheat entering Mexico should be eliminated this yearTariffs on wheat entering Mexico should be eliminated this year

• According to the U.S. Wheat Association, sales to Mexico have According to the U.S. Wheat Association, sales to Mexico have increased 35% over the same period last year increased 35% over the same period last year

Mexico’s Sugar TradeMexico’s Sugar Trade

• At a minimum, Mexico was allowed to ship 7,258 At a minimum, Mexico was allowed to ship 7,258 metric tons of raw cane sugar duty-free. metric tons of raw cane sugar duty-free.

• Limited to 250,000 tons of duty free imports per yearLimited to 250,000 tons of duty free imports per year

• Raw sugar tariff was 9.07 cents a pound in 2002 and Raw sugar tariff was 9.07 cents a pound in 2002 and the refined sugar tariff was 9.61 cents a pound the refined sugar tariff was 9.61 cents a pound – Decreases by about 1.5 cents per yearDecreases by about 1.5 cents per year– Both will reach 0 in 2008Both will reach 0 in 2008

Whole TomatoesWhole Tomatoes

• From 1993 to 1998 there was an From 1993 to 1998 there was an 83% inc. in Mexico’s exports 83% inc. in Mexico’s exports

• Tariffs were already low, but are Tariffs were already low, but are being phased outbeing phased out

• Minimum price/reference price Minimum price/reference price restrictionrestriction

• July 1 to October 22 ($4.30 per 25-lb box)July 1 to October 22 ($4.30 per 25-lb box)

•October 23 to June 30 ($5.27 per 25-lb box) October 23 to June 30 ($5.27 per 25-lb box)

Whole Tomatoes Whole Tomatoes Continued…Continued…

• New variety of tomatoes New variety of tomatoes – Vine-ripe, ESL (extended shelf life) tomatoesVine-ripe, ESL (extended shelf life) tomatoes

•Last one week longer in storage than a mature green Last one week longer in storage than a mature green tomatoestomatoes

•Don’t grow well in Florida due to wet weatherDon’t grow well in Florida due to wet weather

• Tomato market is becoming more Tomato market is becoming more segmentedsegmented– ESL varieties preferred by consumersESL varieties preferred by consumers– Food Service industry prefers ripe green Food Service industry prefers ripe green

tomatoes for slicingtomatoes for slicing

U.S Import of TomatoesU.S Import of Tomatoes

CucumbersCucumbers

• About 38% cucumbers for U.S. About 38% cucumbers for U.S. consumption are importedconsumption are imported– In 1998 94% (143 million according to the In 1998 94% (143 million according to the

USDA) of imports came from Mexico USDA) of imports came from Mexico

• TariffsTariffs– Pre-NAFTA tariffs were near 20% on Mexican Pre-NAFTA tariffs were near 20% on Mexican

imports to the U.S.imports to the U.S.– These tariffs are being phased out over a 15 These tariffs are being phased out over a 15

year periodyear period

Citrus FruitsCitrus Fruits

• Most citrus fruits can enter Mexico and Most citrus fruits can enter Mexico and the U.S. duty freethe U.S. duty free

• Limes are the main citrus export to U.S. Limes are the main citrus export to U.S. from Mexicofrom Mexico– U.S. imported $43million of limes in 1998U.S. imported $43million of limes in 1998– Tariff changes estimated to have increased Tariff changes estimated to have increased

lime imports from Mexico by 2%lime imports from Mexico by 2%

Benefits from NAFTABenefits from NAFTA• Increased tradeIncreased trade

• Increased the Increased the number of jobsnumber of jobs

• Lowers poverty in Lowers poverty in MexicoMexico

• Assisted Mexico in Assisted Mexico in importing importing environmentally environmentally friendly technologyfriendly technology

• Regulated working Regulated working conditionsconditions

Pitfalls of NAFTAPitfalls of NAFTA

• Will harm Mexican FarmersWill harm Mexican Farmers– Need tariffs to support farmersNeed tariffs to support farmers– Mexico must implement subsidies for farmersMexico must implement subsidies for farmers

• Lack of diversity in Mexico’s trading partnersLack of diversity in Mexico’s trading partners– Bilateral trade btw Mexico and European Union Bilateral trade btw Mexico and European Union

(EU) was 10-11% before NAFTA(EU) was 10-11% before NAFTA– Currently accounts for 5-6% of tradeCurrently accounts for 5-6% of trade– Mexico relies on U.S. for 80-90% of tradeMexico relies on U.S. for 80-90% of trade

ReferencesReferences• www.agr.gc.cawww.agr.gc.ca• http://usda.mannlib.cornell.edu/reports/erssor/ihttp://usda.mannlib.cornell.edu/reports/erssor/i

nternational/wrs-bb/2000/nafta/wrs99-1a.pdfnternational/wrs-bb/2000/nafta/wrs99-1a.pdf• http://www.maquilaportal.com/public/artic/artichttp://www.maquilaportal.com/public/artic/artic

59e.htm59e.htm• http://www.maquilaportal.com/cgi-bin/public/hihttp://www.maquilaportal.com/cgi-bin/public/hi

st/hist.pl?Klein=2002-11-06&Klein2=4613&Klest/hist.pl?Klein=2002-11-06&Klein2=4613&Klein3=NOVEMBERin3=NOVEMBER

• http://www.maquilaportal.com/public/artic/artichttp://www.maquilaportal.com/public/artic/artic53e.htm53e.htm

• http://www.maquilaportal.com/cgi-bin/public/hihttp://www.maquilaportal.com/cgi-bin/public/hist/hist.pl?Klein=2002-11-25&Klein2=4688&Klest/hist.pl?Klein=2002-11-25&Klein2=4688&Klein3=NOVEMBERin3=NOVEMBER

References ContinuedReferences Continued

• http://www.ers.usda.gov/briefing/tomatoeshttp://www.ers.usda.gov/briefing/tomatoes/tomatopdf/FrTomImpCntry.pdf/tomatopdf/FrTomImpCntry.pdf

• http://www.maquilaportal.com/cgi-bin/publhttp://www.maquilaportal.com/cgi-bin/public/board.pl?klie=5ic/board.pl?klie=5

• http://www.mexicobusiness.com/news.htmhttp://www.mexicobusiness.com/news.htm• http://www.ers.usda.gov/briefing/sugar/polhttp://www.ers.usda.gov/briefing/sugar/pol

icy.htm#mexicoicy.htm#mexico• http://www.ers.usda.gov/briefing/mexico/trhttp://www.ers.usda.gov/briefing/mexico/tr

ade.htmade.htm• http://www.usmcoc.org/n6.htmlhttp://www.usmcoc.org/n6.html