Since NAFTA, U.S. tomato imports have increased significantly and most of the imports are from Mexico and Canada. This study considers a four-country (the United States, Mexico, Canada, and ROW) model to analyze the trade creation and trade diversion effects of NAFTA on tomato trade. U.S. demand for tomato has been influenced by income and other demand-driven factors. Even though the demand is higher, the U.S. price has not risen because the increase in imports has offset the increase in demand.
- Tomato imports