The Rise of Mexican Corn Production in the Face of Cheap Imports

Mexican corn production faced the rise of cheap imports Mexico completed a comprehensive transformation of economic and trade relations with other countries of the world. The North American Free Trade Agreement is a symbol and a means to keep the change permanently. Mexico hopes to promote economic growth by increasing trade with the United States. Economists expect that winners and losers will exist as trade evolves. Maize producers are expected to become one of the lost sectors. The structure of the North American Free Trade Agreement is designed to help gradually achieve this effect, but this sector feels the greatest pressure on international prices and trade flows.

The existing North American Free Trade Agreement is devastating for small farmers in Mexico. After the agreement came into force, Mexico flooded with cheap subsidies for corn and other items in the United States. Estimated 2 million Mexican farmers are bankrupt. To feed the family, many people leave America to find jobs. Trump's new North American Free Trade Agreement is undoubtedly aimed at further expanding US corn exports to Mexico, other crops and meat. As a result, there is the possibility of becoming an economically promoted immigrant at the northern border of Mexico.

After the North American Free Trade Agreement, prices of basic crops such as maize in Mexico declined and these crops were subsequently imported from Mexico. However, after the North American Free Trade Agreement, agricultural production in Mexico has not declined. Unilateral corn liberalization and the North American Free Trade Agreement by the Mexican government are two causes of Mexican corn price declines. The price of Mexican maize in 1993 was $ 4.84 per bushel, but in 1997 it fell to $ 3.65 per bushel and it maintained about the same level. However, despite price declines, corn production in Mexico has increased (see Figure 3). 23-2006, 2006, p. 163. (Next Yun ± Saude and Taylor) 42 years ± Odnau and Taylor, p. 165. Hufbauer, Gary Clyde, and Jeffrey J. Schott, Reexamination of the North American Free Trade Agreement: Achievements and Issues, 333-334. (Hufbauer and Schott below). 44 Yu ez and Naude, p. 179