Not so sweet: potential economic implications of restricting U.S. sugar imports from Mexico
Date
2017
Authors
Sinclair, Wilson James, author
Countryman, Amanda, advisor
Graff, Gregory, committee member
Cutler, Harvey, committee member
Journal Title
Journal ISSN
Volume Title
Abstract
In December 2014, the U.S. and Mexican governments signed a bilateral agreement constraining Mexico's ability to export sugar to the U.S. because of dumping allegations by U.S. producers. This restriction came after six years of unlimited, tariff-free access to the U.S. market for Mexican sugar producers through the North American Free Trade Agreement. This analysis employs a twenty-eight country partial equilibrium model to estimate the price and welfare impacts of this bilateral trade agreement. Estimates suggest that the agreement successfully increases U.S. price by curbing imports from Mexico. These results translate to an average annual increase in producer surplus of approximately $620 million and decrease in consumer surplus of $1.48 billion across the five-year period simulated.
Description
Rights Access
Subject
Mexico
trade
agreement
United States
sugar