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Trade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of ... - page 15 / 17

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AAEA Meeting 2006

15

Conclusions

US agricultural imports have been responsive to tariff rate reductions applied to Mexican products, with their impacts declining overtime.

Pre NAFTA tariff rates have significant impacts on US imports: higher pre NAFTA tariff rates resulted in higher US imports during the NAFTA period.

US-Mexico trade agreement under NAFTA has been trade creating rather than trade diverting.

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