GTAP Resources: Resource Display
| GTAP Resource #7310 |
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"Reversing Deep Integration: The Case of US-Mexico Corn Trade" by Robertson, Dewey and Roman Keeney Abstract In late 2020, President Lopez-Obrador of Mexico signed a decree banning genetically modified (GM) corn and the use of herbicide glyphosate in the production of food for human consumption. In a sobering realization of Mexico’s dependency on imported U.S. corn, the executive decree has been modified multiple times, pushing back its effective date, and narrowing the definition of GM corn in the human food system. We use a computable general equilibrium (CGE) to measure the effects of this potential ban by modeling various counterfactual scenarios. We find that Mexican grain production increase by 24%, requiring a 10% increase in land used in grain production and grain prices increasing 18%. We find significant welfare losses at the expense of US producer incomes. We further extend the model to consider a scenario with US producer parity guaranteed by subsidies. |
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- Agricultural policies - Preferential trading arrangements - North America |
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Public Access  Paper (313.2 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
