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Trade Liberalization and Agricultural Chemical Use: United States and Mexico
Author(s) -
Williams Shon P.,
Shumway C. Richard
Publication year - 2000
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/0002-9092.00015
Subject(s) - investment (military) , agriculture , economics , free trade , free trade agreement , agrochemical , liberalization , agricultural economics , international trade , international economics , business , geography , political science , market economy , archaeology , politics , law
To anticipate the likely effects of recent trade agreements with Mexico on the environment and food safety, this paper examines changes in agricultural chemical use. Econometric estimation and simulation suggest that the combined effects of the North American Free Trade Agreement (NAFTA), economic growth, research investment, and farm policy are expected to increase chemical usage substantially in the United States and undoubtedly lead to greater groundwater contamination. In Mexico, the expected effects are a substantial increase in fertilizer use but a decrease in pesticide use. Increases in private research investment are expected to increase the use of both types of chemicals, but increases in public research investment in the United States are not.