See on Scoop.it – Geography Education

“When the agreement between the United States, Mexico and Canada went into effect in 1994, it removed nearly all trade barriers between the countries. Among the industries affected was agriculture, forcing small Mexican farmers into direct competition with big American agribusiness. Cheap American corn – heavily subsidized, mechanized and genetically modified – soon flooded the Mexican market to the detriment of local farmers.  As U.S. farmers exported their subsidized corn to Mexico, local producer prices plummeted and small farmers could no longer earn enough to live on.”

Seth Dixon‘s insight:

International trade agreements are usually discussed at the national level.  “NAFTA benefits Mexico” is a commonly heard saying because trade with the United States and Canada strengthens the manufacturing sector in Mexico.  Even if there is an overall benefit to a country, there are always winners and losers for different regions, economic sectors and many other demographic groups.   Farmers in southern Mexico were certainly a sector that struggled mightily under NAFTA.

Tags: Mexico, supranationalism, industry, place, agriculture, food production,

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