WELFARE ANALYSIS of the U.S.-MEXICAN TOMATO SUSPENSION AGREEMENT

Elijah Kosse, Stephen Devadoss

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This study develops a three-county trade model of the United States, Mexico, and Canada to analyze the effects of the 2013 Suspension Agreement on prices, production, consumption, trade flows, and welfare in each country. Although only the United States and Mexico are signatories to the agreement, Canada was also included because the U.S. minimum price distorts prices across the region. Three tomato categories - field, greenhouse, and cherry and grape - are studied because each has a distinct minimum price. The overall welfare effects are positive for Mexico and Canada, but negative for the United States.

Original languageEnglish
Pages (from-to)430-449
Number of pages20
JournalJournal of Agricultural and Applied Economics
Volume48
Issue number4
DOIs
StatePublished - Nov 1 2016

Keywords

  • Canada
  • Mexico
  • Tomato Trade Agreement
  • United States
  • welfare

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