Trade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of the Agricultural Sector

dc.creatorSusanto, Dwi
dc.creatorRosson, C. Parr, III
dc.creatorAdcock, Flynn J.
dc.date2017-04-01T13:54:32Z
dc.date.accessioned2026-07-09T02:48:21Z
dc.descriptionThis paper examines the effect of the U.S.-Mexico trade agreement under the North American Free Trade Agreement (NAFTA). The results suggest that U.S. agricultural imports from Mexico have been responsive to tariff rate reductions applied to Mexican products. A one percentage point decrease in tariff rates is associated with an increase in U.S. agricultural imports from Mexico by 5.31% in the first 6 years of NAFTA and by 2.62% in the last 6 years of NAFTA. U.S. imports from Mexico have also been attributable to the pre-NAFTA tariff rates. Overall, the results indicate that the U.S.-Mexico trade agreement under NAFTA has been trade creating rather than trade diverting.
dc.identifierdoi:10.22004/ag.econ.6618
dc.identifierhttps://ageconsearch.umn.edu/record/6618/files/39010121.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/6618
dc.identifier.urihttp://hdl.handle.net/123456789/520361
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/6618
dc.titleTrade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of the Agricultural Sector
dc.typeText

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