NAFTA AND AGRICULTURE:
Implications for Changes in U.S. Farm Policy

Gary W. Williams

TAMRC International Research Report No. IM-5-01
November 2001


Abstract:  The primary impacts of NAFTA have been to stimulate U.S. imports of specific products from Mexico and to lock in U.S. trade gains achieved through the unilateral liberalization of Mexican agricultural and food trade that began in the mid-1980s.  The more open borders and closer linkages among U.S., Canadian, and Mexican markets as a result of NAFTA imply that either less domestic policy intervention or different types of more costly intervention may be required to achieve the same level of price support than otherwise.  At the same time, NAFTA implies that some policy choices may be less effective while others are less costly in achieving a given level of price support than in the absence of freer trade under NAFTA.
 
 

The Texas Agricultural Market Research Center (TAMRC) has been providing timely, unique, and professional research on a wide range of issues relating to agricultural markets and commodities of importance to Texas and the nation for over thirty years.  TAMRC is a market research service of the Texas Agricultural Experiment Station and the Texas Agricultural Extension Service.  The main TAMRC objective is to conduct research leading to expanded and more efficient markets for Texas and U.S. agricultural products.  Major TAMRC research divisions include International Market Research, Consumer and Product Market Research, Commodity Market Research, Information Systems Research, and Contemporary Market Issues Research.