Globalized supply chains: Emergent telecouplings in Mexico’s beef economy and environmental leakages

Abstract

This article analyzes how trade liberalization in Mexico, particularly following the North American Free Trade Agreement (NAFTA), has transformed that nation’s cattle economy into a feedlot system manifesting multiple telecouplings and based on the transnational provision of inputs. A conceptual model is presented that suggests how environmental effects involving land use and GHG emissions emerge from changes in the beef supply chain. The article then presents an empirical analysis establishing that the production of corn and beef has intensified in the wake of NAFTA, and that deforestation rates have declined over the same period. Evidence is also presented showing that this has not precipitated a land sparing effect, given the leakage of deforestation into Central America, which supplies Mexican feedlots with 36 % of their source materials. The article calculates associated GHG emissions and establishes that enteric fermentation dominates deforestation as a source, and that ∼14% of GHGs produced by the post-NAFTA Mexican supply chain are emitted in Central America. This raises accounting questions for signatories to the Paris Climate Treaty, given commitments are nation-based.