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Since the implementation of NAFTA in 1994 agri-food trade between Mexico and the United States grew substantially. While some analysts argue that NAFTA has contributed the most, others have emphasized the role played by exchange rate in this process. An attempt is made in this paper to address this issue by determining the extent to which NAFTA, expansion of the livestock sector, exchange rate and exchange rate variability have contributed to the expansion of Mexican maize imports from the United States from January 1989 to December 2004.


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