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Abstract

NAFTA was the first trade liberalization agreement to explicitly include environmental provisions. Both agricultural trade and U.S. FDI in the Mexican food processing and agricultural sectors have increased since NAFTA's implementation. Environmental implications include a greater emphasis on the environment in Mexico as well as positive and negative impacts due to changes in scale, structure and technology in those sectors. Increased use of chemicals due to both increased outputs and a shift to greater horticultural crop production have negative impacts on the Mexican environment but improved technologies in processing produce favorable effects.

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