Implications of the North American Free Trade Agreement for Long-term Adjustment in U.S.-Mexican Beef Production and Trade
Mexico and the United States have a long history of substantial trade in cattle and beef. The enactment of a NAFTA, and the subsequent elimination of tariffs and non-tariff trade barriers, will alter that trade balance. In the short run, this will result in increased imports of feeder cattle from Mexico to the United States and increased exports of beef. In the longer run, technology transfers that reduce Mexico's cost of beef production may result. Mexico could become a net beef exporter to the United States with accompanying shifts in beef cow herd size.