AGRICULTURAL TRADE LIBERALIZATION UNDER NAFTA: REPORTING ON THE REPORT CARD

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NAFTA - Report Card on Agriculture

Source: Compiled from response data.

Information shared at the workshop seems to have had an impact on
opinions as to NAFTA’s general benefits, particularly among Canadian and
American participants. In the second report card, only 53 percent of Canadian
respondents now felt that there had been a large impact benefit compared to 47
percent who felt there was a small benefit. Among Mexican respondents, 67
percent now believed there to be large benefit compared to 47 percent who felt
there was a small benefit. Shifts among U.S. respondents resulted in seven
percent indicating a large benefit and 93 percent a small benefit. Trade theory
suggests that when economies merge, the smaller economy is expected to ex-
perience a larger relative benefit. Participant responses across countries seem
to support this assumption. It should be noted that no one selected the no-
change, small-deficit, or large-deficit categories.

Overall Benefit to Agriculture in Other Countries

When first asked about the extent to which NAFTA generally has ben-
efitted agriculture in other countries, 53 percent of Canadians thought there
was a large benefit and 47 percent felt there was a small benefit (Table 2).
Mexicans felt even more strongly that other countries had benefitted from
NAFTA, with 75 percent indicating a large benefit and 25 percent a small ben-
efit. Participants from the United States painted a somewhat different picture
with only 30 percent suggesting a large benefit to other countries, 60 percent
believing there to be a small benefit, with five percent each indicating no change
and don’t know.

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