Evaluation of the Effects of Mexican Trade Policy on the Mexican Maize Market


José A. García Salazar
Gary W. Williams

TAMRC International Research Report No. IM-01-02R
Revised May 2004


ABSTRACT:
This study is an analysis of the effects of alternate trade policies (NAFTA, completely free trade, and actual policy followed by the Mexican Government) on the production, consumption, and prices of maize in Mexico. The study also analyzes how changes in the $US/peso exchange rate and in the costs of transportation from Mexican ports of entry to internal points of consumption affect the Mexican maize market.Finally, the study provides a forecast of the supply and demand conditions in the Mexican maize market in the year 2008. A model of spatial and temporal distribution of the Mexican maize market is developed and used for the various analyses.