Free Trade Impacts On U.S. And Southern Agriculture

Abstract

In June 1991, the United States and Mexico agreed to work toward the formation of a free trade area (FTA), in which trade barriers between the two countries will be gradually reduced and eUrninated. An FTA is expected to deepen a trade relationship that has always been important to the two countries, and which has been expanded by the unilateral trade liberalization initiated by Mexico in 1983. A U.S. Mexico FTA will be an important development for U.S. agriculture. In 1990, Mexico ranked among the top four markets for U.S. agricultural exports nd imports. Mexico's share of U.S. agricultural trade has increased since the mid-1980s, and could expand further if trade barriers are removed.