AAEA Meeting 2006
Interpretations of Parameter Estimates: Table 2
NAFTA Dummy significant: significant evidence that US imports from ROW increased during NAFTA period (20.1%).
A 1% reduction in tariff rates against ROW 1.5% increase in US imports from ROW; nearly 1/4 the effects of tariff reductions against Mexico Suggests that US gives more preference to Mexican Agricultural Products
Tariff Rates against Mexico: + but not significant there is no significant evidence that NAFTA has caused trade diversion in agricultural sector.
Prices and GDP are highly significant: predominant factors that likely determine US imports from ROW