A _______________ ensures that the market is not flooded with imported goods, protecting local producers by limiting competition. (pg.2)
trade barrier
Explain the negative effects of Mexican corn producers as a result of NAFTA. (pg.3)
As a result of NAFTA, Mexican corn producers have faced several negative impacts. Firstly, the removal of trade barriers between Mexico, the United States, and Canada led to an influx of cheap, subsidized corn from the US. This flooded the Mexican market with low-priced corn, which severely affected local corn producers who could not compete with such low prices.
Additionally, with the implementation of NAFTA, Mexico had to eliminate government subsidies and price supports for its corn farmers. This further disadvantaged Mexican producers as they lost protection and were unable to compete with the highly subsidized US corn industry. Many small-scale Mexican farmers were forced out of business or had to abandon their traditional agricultural practices.
Furthermore, Mexican corn producers had to contend with the vast differences in productivity and technology between the US and Mexico. American farmers had access to advanced machinery, better seeds, and modern farming techniques, giving them a significant advantage over their Mexican counterparts. This further widened the gap between the competitiveness of the two countries' agricultural sectors.
Overall, the negative effects of NAFTA on Mexican corn producers include increased competition from cheap imports, loss of government support, and being unable to match the productivity and technology advancements of US corn producers. These factors have contributed to the decline of the Mexican corn industry and negatively impacted the livelihoods of many corn farmers in the country.