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56 / 81

US exports to Canada Mexico NAFTA subtotal

55 76 131

21 46 67

54 777 831

24 126 150

54 476 530

26 82 109

38 947 986

26 142 168

37 284 321

33 61 95

Total world (including NAFTA)

1,232

359

1,405

397

1,191

360

1,420

386

736

323

US imports from Canada Mexico NAFTA subtotal

8 1 9

11 0 11

15 2 16

16 1 17

13 3 15

12 1 13

16 3 19

16 1 17

20 5 25

14 2 16

Total world (including NAFTA)

30

31

41

45.6

37

37

55

65

67

76

Note: Besides yellow, most other corn products are white. Source: USDA Foreign Agriculture Service (FATUS) database, 2004.

Table 5.18

US white corn trade with NAFTA partners, 1993–2003 (volume in thousands of metric tons and value in millions of dollars)

Country

1993

1994

Volume Value

Volume Value

1995

Volume

Value

1997

Volume Value

1996

Volume

Value

millers at a somewhat lower price (table 5.20).146 Conasupo was disman- tled in December 1998, but government market price supports to Mexican corn producers were increased. 147

Mexican price support programs were maintained through various chan- nels, including Conasupo, the Agricultural Marketing Board (ASERCA), and Alianza. From 1997 to 2000, ASERCA complemented Conasupo for corn-market interventions.148 In 2003, the Mexican government empha- sized ASERCA’s target income program for a broader range of crops, aimed at compensating producers for the gap between target and market prices (Larre, Guichard, and Vourc’h 2003). Alianza also subsidized farmers’ input use (Yunez-Naude 2003). Established in 1996, Alianza provides matching grants, with the aim of boosting agricultural productivity.

146. Mexican corn millers received an in-cash subsidy, administered by ASERCA, for corn bought from the domestic market.

147. According to the OECD, market price supports badly distort production and trade and are not efficient at transferring income to producers. Mexican market price support pro- grams accounted for 62 percent of producer support in 2001.

148. Established in 1991, ASERCA largely replaced Conasupo for direct interventions in sorghum and wheat. However, cotton, rice, and soy producers in selected regions have also been included in ASERCA programs. See Lederman, Maloney, and Serven (2003).

338

NAFTA REVISITED: ACHIEVEMENTS AND CHALLENGES

Institute for International Economics | www.iie.com

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