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Mexico - Integration of the North American market for sensitive agricultural commodities : policy notes overview and dry bean market - implications for Mexican producers and consumers (Inglês)

This note is conceived in an environment where there was some fear that the final phase of opening under North American Free Trade Agreement (NAFTA) will create pressure on local producers of corn, beans and sugar. In order to better understand and prepare for such impacts, the Government of Mexico invited the World Bank, together with the Instituto Mexicano para la Competitividad (IMCO), to analyze the potential effects on both producers and consumers of the tariff and quota phase-out on these markets. The study was highly consultative and input was sought from a number of sources including the Ministry of Agriculture (SAGARPA), the Ministry of Public Finance (SHCP), producers and entities from the private sector. The notes predicted that in the short term, the phasing out of tariffs and quotas will have very little impact on the trade of corn and beans, since these markets were already largely integrated. For sugar cane, the notes concluded that the industry can become competitive with the help of some policy changes. This study examines the probable effects on Mexican producers and consumers of this final step. The analysis considers several dimensions of competitiveness of Mexican producers vis-a-vis their counterparts in the United States (US), market structure in Mexico and the U S., the impacts of increased import competition on consumers, and most importantly policy options for the government to support producers in responding to increased competition and in taking full advantage of opportunities opened by NAFTA. The study analyzed the impact of partially reversing the policies agreed under NAFTA in these products, finding that this will on balance be quite costly to the Mexican economy. The notes also include estimates of location-specific production costs, aggregated into variable cost or supply curves for the nation as a whole, which can assist the government in identifying areas most at risk from competitive pressures from NAFTA or other sources.

Detalhes

  • Autor

    Brandriss,Peter M., Caballero,Jose Maria, Larson,Donald F., Nash,John D.

  • Data do documento

    2007/12/01

  • TIpo de documento

    Documento de Trabalho

  • No. do relatório

    78517

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    México,

  • Região

    América Latina e Caribe,

  • Data de divulgação

    2013/06/18

  • Disclosure Status

    Disclosed

  • Nome do documento

    Mexico - Integration of the North American market for sensitive agricultural commodities : policy notes overview and dry bean market - implications for Mexican producers and consumers

  • Palavras-chave

    advantage of economies of scale;investment need;social safety net program;economic value of water;effect of climate change;advantage of scale economies;policy option;general equilibrium model;fructose corn syrup;share of output;rise and fall;Production of Crops;public research institution;price for water;efficient water use;per capita consumption;inventory as collateral;access to financing;elimination of tariffs;cost of production;demand for food;amount of investment;burden of adjustment;employment in agriculture;number of workers;investment in research;term debt;market intelligence system;public investment program;barrier to import;lack of competition;increased import competition;average production cost;response to crisis;public information system;increase consumer price;niche market;public expenditure;market integration;sugar sector;black bean;production technology;supply chain;market information;sugar industry;vertical integration;global market;production area;sugar cane;bilateral trade;scale economy;domestic consumption;tariff rate;quota imports;transport cost;primary sector;land market;agricultural support;bean variety;land use;large irrigation;agricultural producer;aggregate welfare;seed production;seed variety;public market;seed varieties;improved seed;market price;public good;foreign market;future water;extension service;political feasibility;reducing barriers;regional production;alternative energy;management procedure;pricing policy;Water Allocation;existing law;government management;railway company;scarcity problems;agreed price;cash payment;social production;product area;Land tenure;future research;world market;resistant crop;average yield;feed production;staple food;governing board;pinto bean;subsistence farmer;price premium;Trade Policies;total output;financial mechanism;total consumption;Population Growth;production increase;market chain;fodder crop;price support;eliminating tariffs;farmers uses;average cost;agricultural market;cultural preference;rail transport;wholesale price;local producer;short-term impact;market trend;product market;short term impact;road infrastructure;poverty alleviation;small producer;water user;irrigated area;implicit subsidy;social cost;financial cost;long-term effect;consumer preference;market opportunity;consumer demand;climatic suitability;agricultural program;benefit analysis;international market;Trade Policy;technological component;water availability;productive area;production chain;lowering barrier;consultative process;environmental constraint;technology licensing;public policy;public-private partnership;tradable water;Water Policy;sugar policy;urban agricultural policy;input price;reference price;domestic preference;domestic demand;debt level;export prospects;productive efficiency;soft drink;high transportation;market condition;constitutional reform;rail market;regional variation;storage cost;plenary session;political issue;railroad system;industry restructuring;port facility;border area;agricultural subsidy;trucking cost;political group;regulatory process;funding decision;strategic objective;efficient supply;agricultural contract;producer association;seed law;editorial services;wheat producer;project selection;moral incentive;farmer association;agricultural product;rail companies;rural economy;market structure;short term contract;dry bean;short-term contract;commodity policy;private provider;Technology Transfer;global commodity;input cost;food price;political resistance;land fragmentation;market segment;human consumption;export product;cultural reasons;promoting competition;red tape;fiscal mechanism;common goals;government ownership;transport privatization;political opposition;energy cost;attractive market;fiscal cost;public program;commonly known;contingency plan;crop shortfalls;ethanol demand;expert opinion;transparent solutions;feeder stock;agricultural organization;national gdp;food sector;secondary sector;variable cost;financial instrument;corn production;small landholding

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