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GTAP Resource #7310

"Reversing Deep Integration: The Case of US-Mexico Corn Trade"
by Robertson, Dewey and Roman Keeney

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.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Created: Robertson, D. (4/15/2024)
Updated: Batta, G. (5/29/2024)
Visits: 86
- Agricultural policies
- Preferential trading arrangements
- North America

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