2016 Postmortem
Related: About this forumClinton's NAFTA Devastated Mexican Farmers & Increased Rural Poverty
Even though the Mexican government is responsible for lowering their own tariffs on corn beyond what was originally agreed and lost the option to raise tariffs to safeguard its people from a flood of subsidized corn, NAFTA is the major contributor to harming poor Mexican farmers.
For over 10,000 years, Mexico has been growing corn. Three million Mexican farmers currently grow corn, but they are facing a crisis caused by rapidly declining prices (Real World 215).
The reason why real prices for corn have dropped is because of the increase of U.S. corn exported to Mexico. Due to declining prices, the Mexican people who depend on corn experienced a decline in income and increase in hardships. Compared to the Mexican governments insignificant budget of $1 billion, the United States spends about $10 billion annually into subsidies for U.S. corn producers. The United States controls about 70% of the global corn market, which hugely impacts prices and small scale farmers in Mexico (Real World 215).
Outcomes
The following are a few effects from the Mexican Corn Crisis:
Rural Poverty
Migration
Environmental Impact
yes, it's true that Reagan, Salinas de Gotari, Mulroney, and Bush the elder proposed the agreement. But it was
Clinton and the Business Roundtable that promoted and passed NAFTA. It would have withered away without Clinton. It effectively was and is Clinton's NAFTA and Hillary was a HUGE supporter and promoter of NAFTA.
mmonk
(52,589 posts)when it happened. They were out of options.
bigwillq
(72,790 posts)Hoyt
(54,770 posts)for decades. Many of the Mexican corn farmers moved into Avocados or other crops. I can now buy wonderful Mescal from Mexico small batch producers. Some lucky former dirt farmers have gone from earning 50 cents a day to $8/hour jobs with foreign auto and other companies who have opened plants there. Obviously, subsidized American corn hurt them even more, and Mexico for some reason cut tariffs below allowable levels.
The Economist -- in "Trade is not to blame for the poverty of Mexican farmer" -- notes that despite increased competition, Mexican farm exports to the United States have tripled since NAFTA's implementation, in part because of reduced tariffs on corn.
Even if one were to accept the worst assessments of NAFTA, Mexico appears to be ready to sign the TPP.