Abstract
Marketing managers in the U.S. agribusiness industry are increasingly looking at overseas opportunities to develop markets and expand sales. As a result, understanding the nature and market effects of international trade agreements is gaining importance. This paper formulates an econometric model to determine the impact of the NAFTA on Mexican imports of beef from the United States. It also tests whether there was structural change in Mexico's import demand for beef following enactment of the NAFTA. The results show that the decline in Mexican imports of U.S. beef in 1995-96 relative to 1994 was not the result of NAFTA provisions, but due largely to the devaluation of the peso. The analysis also indicates that the NAFTA has enhanced U.S. sales of beef into Mexico primarily as a result of the preferential tariff treatment enjoyed by the United States under the Agreement.
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