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Abstract

The objective of this paper is to assess the impact of NAFTA vis-a-vis other domestic and environmental forces in corn trading between U.S. and Mexico, and between U.S. and Canada. Pre- and Post-NAFTA comarison indicates that there has been a significant increase in corn trade in the post-NAFTA era. Regression analysis could not provide conclusive evidence that such increase was solely due to NAFTA. Economic crisis of severe drought in Mexico, domestic policy reforms such as cut in government's price support and withdrawal of ban on feeding corn to livestock may have contributed in the increased volume of corn trade in the post-NAFTA era.

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