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Welfare Impacts of the Mexico Potato Quarantine

Published online by Cambridge University Press:  26 January 2015

Timothy J. Richards ,
Ignacio Molina  and
Osman Hussein
Timothy J. Richards
Affiliation:
Morrison School of Management and Agribusiness, Arizona State University, Mesa, AZ
Ignacio Molina
Affiliation:
Morrison School of Management and Agribusiness, Arizona State University, Mesa, AZ
Osman Hussein
Affiliation:
Morrison School of Management and Agribusiness, Arizona State University, Mesa, AZ
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Abstract

Under the North American Free Trade Agreement (NAFTA) tariffs on U.S. potato imports to Mexico were phased out by 1993. Citing phytosanitary issues, in 1996, the Mexican government placed quantitative restrictions on U.S. potato imports and restricted their import only to designated border areas. This article estimates the welfare cost of restricting U.S. potato imports into Mexico. We find that removing trade restrictions may lead to over 1.8 million tons of new imports into Mexico, a gain of consumer surplus of 4.0 billion pesos per year, and a loss of 2.9 billion pesos of producer surplus.

Keywords

international tradenon-tariff barrierspotatoesquarantinesanitary and phytosanitary barrierswelfare lossF13L13Q13Q17C35
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 41 , Issue 3 , December 2009 , pp. 761 - 776
Copyright
Copyright © Southern Agricultural Economics Association 2009

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