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Canadian exports to Mexico United States NAFTA subtotal

0 517 517

0 44 44

0 234 234

0 58 58

0 392 392

0 43 43

0 303 303

0 70 70

0 151 151

0 40 40

Total world (including NAFTA)

522

49

350

63

622

65

364

102

163

50

Canadian imports from Mexico United States NAFTA subtotal

0 580 580

0 92 92

0 1,112 1,112

0 89 89

0 840 840

0 129 129

0 817 817

0 153 153

0 1,469 1,469

0 146 147

Total world (including NAFTA)

580

93

1,113

90

841

130

821

154

1,495

148

Sources: Statistics Canada, Strategic Policy Branch; AAFC (2003a); and UN Comtrade database, 2004.

Table 5.19

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

Country

1993

1994

Volume Value

Volume Value

1997

Volume Value

1996

Volume

Value

1995

Volume

Value

US corn producers receive payments from three key programs: direct payments, marketing loan programs, and countercyclical payments. US export credit guarantee programs, such as the Supplier Credit Guar- antee Program, also underwrite credits that pay for US food and agricul- tural products sold to foreign buyers. The dollar volume of agricultural export credit programs (for all crops) totals about $3.4 billion per year. In 2002, exports to Mexico received about one-fifth of total US export cred- its, close to $680 million. 152 153

Potential Disputes

So far corn disputes have not erupted between the United States and Mex- ico.154 However, agrarian unrest within Mexico and calls to renegotiate

152. Direct payments are based both on land area cultivated and past (rather than current) output. For example, a US corn producer can receive direct payments without necessarily producing corn that year. The marketing loan program is designed to promote agricultural exports. Finally, when the effective corn price is below the target price, US corn producers are entitled to countercyclical payments irrespective of their production level. See USDA (2003b).

153. Based on total US export credits under the Facility Guarantee Program, which reached $3.4 billion in fiscal 2002. See the program’s details at www.fas.usda.gov/excredits/facility. html (accessed in May 2004). See also Oxfam (2003).

154. However, two cases related to HFCS are pending under NAFTA Chapter 11 (invest- ment disputes).

340

NAFTA REVISITED: ACHIEVEMENTS AND CHALLENGES

Institute for International Economics | www.iie.com

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