Effect of NAFTA, EUMFTA and China addition to WTO on the cucumber world market
DOI:
https://doi.org/10.29105/rinn7.14-2Keywords:
Cucumber World Market, International Trade, Economic Integration, Quadratic Programming, Spatial Equilibrium ModelsAbstract
This study empirically analyzed the potential effects of the complete operation of North American Free Trade Agreement (NAFTA), European Union and Mexico Free Trade Agreement (EUMFTA), and the integration of China to the World Trade Organization (WTO), on the cucumber world market. Special emphasis on the impact on Mexico was presented, from a worldwide perspective. A spatial equilibrium model with endogenous prices was constructed for this purpose. Among the findings are: (1) Mexican producers benefited from the complete implementation of NAFTA and EUMFTA. (2) The incorporation of China as a member of the WTO showed a negligible effect on the commercial flows and prices in the cucumber world market. (3) Mexican cucumber production is highly competitive, in the world market, because it has the lowest supply costs.
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