Ten years with NAFTA: a review of the literature and an analysis of farmer responses in Sonora and Veracruz, Mexico

Abstract

This report reviews recent literature regarding impacts of the North American Free Trade Agreement (NAFTA, launched in 1994) on maize and wheat farming in Mexico. A basic overview of maize and wheat production in Mexico is provided, along with a characterization of farming households. This is followed by descriptions of the economic conditions and period of domestic reforms in Mexico, of NAFTA reforms themselves (including predicted results and actual impacts in Mexico), of programs in Mexico to lessen negative impacts of economic liberalization, and of NAFTA in terms of US international trade policies. The final sections present case studies of NAFTA’s impacts on wheat production in the Yaqui Valley, state of Sonora, and on maize production in the Totonacan region of Veracruz State, southeastern Mexico. The results suggest that cooperation and diversification have helped some farmers cope with economic changes under NAFTA.