What Effect Do Free Trade Agreements Have On California Agriculture

Wheat. U.S. wheat exports increased from 321,000 tonnes in 1990 to 1.5 million tonnes in 1996. NAFTA will generate benefits for input suppliers and grain elevators, as trade volumes grow. Intense competition from Canada has held back export growth in the United States in recent years. The impact of prices will be small, as U.S. wheat prices are determined by many global factors. The second conclusion is that there will be uneven effects on sectors, certain markets and regions – typical of any macroeconomic adjustment in trade policy. For example, the U.S.

International Trade Commission (ITC) concludes that a free trade agreement between the United States and Mexico would likely have a negligible impact on the domestic functioning of 17 of the 19 U.S. industries studied. The effects (positive and negative) in countries bordering Mexico would likely be more immediate and pronounced. And of course, the impact of free trade in sectors and markets with the highest tariff and non-tariff barriers would be greater – as in agriculture, products without cars, energy and energy, in banking and transport. California tends to specialize in raw materials, usually sold to high-income countries. The top six destinations in Figure 1 are Japan, Canada, the European Union (EU), South Korea, Hong Kong and Mexico. (Unofficial trade sources indicate that about 10-60% of agricultural exports to Hong Kong can be re-exported to mainland China. If accurate data were available, China could take over from Hong Kong as one of California`s six major markets.) All of the goods listed have a long history of exporting, but the nature of these exports differs. Most of California cotton is exported, mainly in the form of raw cotton, which is ground and processed abroad, especially in Asia. The almond industry also supplies most of your production to foreign markets, especially in Europe. To highlight these statistics, Minister MacAulay stated that this represented more than $5 million for cross-border traffic, while the group was enjoying lunch. Processed foods.

U.S. exports of processed food products to Mexico have increased in recent years. Exports of consumer food products to Mexico exceeded intermediate exports from 1991-93. Mexican lifestyle changes, such as more two-income families, will increase consumer demand for better packaged and prepared foods. Since 1990, for example, U.S. exports of snacks, breakfast food and processed fruits and vegetables have more than doubled. Other goods with higher income levels — wine and beer, nuts, nurseries, cut flowers, pet food — have more than doubled. Sustained income growth and economic growth in Mexico are key to strong exports.

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