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US farm bill impact to Mexico

Autor/es Anáhuac
Elvira C. Anzola-González, Jesús Esteban-Macias, Abel Pérez-Zamorano
Año de publicación
2022
Journal o Editorial
Economic Challenger

Abstract 
In this paper, we look for complementarities and differences between the US farm bill and the agriculture support programs in Mexico, such as PROCAMPO - ASERCA and Alianza para el Campo. In developed countries, similar programs (principally in Europe) exist without regard to liberalism and economic freedom speeches. No one cares about it. México has similar instruments to protect its primary economic sector and has integrated its Agro sector to the aggressive development of the US Agriculture, which is modern and capital intensive. With that, México has left crops to the US. Instead, it has focused on horticultural development, fruit, tropical products, and other labor-intensive agricultural products, conciliating the negative impact of the US farm bill over its competitiveness. This is due to this vast country's direct/indirect reduction of costs favoring local farmers-big or medium- with substantial financial support, less risk, climatological mitigation risks, and commercial or market stimulation programs or vehicles to stop losses. Meanwhile, México benefits from enormous food availability; it has a surplus agriculture sector and gets low-cost supplies for its related industries. The TMEC signed in 2018 did not touch this agricultural integration, and direct foreign investment is expected to increase as more modernization occurs.