Competitiveness of broiler producers in north america under alternative free trade scenarios

Abstract

A spatial equilibrium model was developed to evaluate optimal production and trilateral trade flows of broiler meat under alternative free trade policies in the North American market. The United States has a competitive advantage over Canada and Mexico in producing broiler meat. Canada's import quota and Mexico's import license protect broiler producers in each country from US competition. Eliminating these trade policies under NAFTA could increase US broiler production and increase US broiler meat exports to Canada and Mexico. An appreciation of the US dollar relative to the Canadian dollar and Mexican peso would have a greater impact on trade between the United States and Mexico than on trade between the United States and Canada. ©1994 by John Wiley & Sons, Inc.