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Market And Welfare Impacts Of Cool On The U.S.-Mexican Tomato Trade, Julie Caswell
Market And Welfare Impacts Of Cool On The U.S.-Mexican Tomato Trade, Julie Caswell
Julie Caswell
A two-country, comparative static partial equilibrium model is used to simulate the ex ante market and welfare outcomes of U.S. country-of-origin labeling for the U.S.-Mexico fresh tomato trade. In all scenarios where consumers show a relative preference for U.S. tomatoes, Mexican tomato exports decline and U.S. production increases. Mexican trade losses using low- to mid-range consumer preference assumptions are 14% to 32% of the value of Mexican tomato exports to the United States and 1% to 3% of the total value of agricultural produce exports, partially negating the market access gains of NAFTA. Consumer effects are small and sometimes negative. …