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Impacts of Globalization on Agricultural Competitiveness: The Case of NAFTA

Published online by Cambridge University Press:  28 April 2015

P. Lynn Kennedy
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University AgCenter, Baton Rouge, LA
C. Parr Rosson III
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX

Abstract

Major components of agricultural competitiveness, including definitions, factors, and indicators of competitiveness, are discussed. The case of the North American Free Trade Agreement (NAFTA) is used to illustrate how factors have influenced the competitive position of the NAFTA countries. Traditional neoclassical trade theory is used to evaluate the impact of currency exchange rate fluctuations and trade preferences on agricultural competitiveness. Pre- and post-NAFTA market shares are evaluated for five agricultural commodities of importance to the southern United States. The results of these evaluations are compared with theoretical expectations and discussed with special emphasis on implications for future trade negotiations.

Type
Invited Paper Sessions
Copyright
Copyright © Southern Agricultural Economics Association 2002

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