subsidies

Whose to Blame: Government Policies or Free Trade?

Topics: Trade, Agriculture
Countries: Mexico

Today, Business Week takes a look at how Mexico is benefiting under Nafta -- but why the free trade agreement hasn't solved all of Mexico's economic woes.

There's no question that the country has benefited greatly from Nafta: Mexico has become the world's 15th-largest exporter, sending abroad $272 billion of merchandise in 2007 ($43 billion of which was oil). It transformed a $3 billion trade deficit with the U.S. in 1993 into a $75 billion surplus in 2007. Mexico went on to sign free-trade agreements with 41 other countries, attracting some $223 billion of foreign investment in 15 years.

So, why did tens of thousands of angry Mexican farmers take to the streets in late January, demanding that Nafta be renegotiated? Because after a decade and a half of free trade, Mexico's economic transformation is incomplete, and many Mexicans are blaming Nafta for a plethora of problems that have more to do with bad government policies than with free trade.

From the Archives

Free Trade Vs. Small Farmers

Previously filed under: Asia, Agriculture
Small farmers are the key in the debate surrounding agricultural subsidies, the issue which has long stalled the Doha Round of WTO talks.

From the Archives

Sahelian Cotton Farmers on Their Knees

Previously filed under: Africa, Trade
The cotton market in Burkina Faso and other African countries has faltered considerably in the last few years forcing farmers and companies to search for alternatives.

From the Archives

Middle School Lesson Plans: Trade

Previously filed under: Europe and Middle East, Lesson Plans
These resources are appropriate for grade levels 6th, 7th and 8th.

From the Archives

Elementary School Lesson Plans: Trade

Previously filed under: North America, Grades 3-5
These resources are appropriate for grade levels 3rd, 4th and 5th.

From the Archives

Primary School Lesson Plans: Trade

Previously filed under: North America, Grades K-2
These resources are appropriate for grade levels Kindergarten, 1st and 2nd.

From the Archives

Heartland Farmers Visit West Africa

Previously filed under: Trade
Farmers from America's Heartland travel to Africa to explore the impact of agricultural subsidies.

From the Archives

Africa's Bitter Harvest

Previously filed under: Trade
Are farmers in developing nations getting fleeced?

From the Archives

Protectionism - Tariffs, Subsidies, and Trade Policy

Previously filed under: Trade
Stephen Spruiell explains the impact of protectionist policy, tarriffs, and subsidies on global trade.

From the Archives

Farming Future - A New World, But Not So Brave

Previously filed under: Europe and Middle East, Trade
What would farming in the North look like if subsidies were cut?

From the Archives

Economic Patriotism - Blind Alley in a Globalized World?

Previously filed under: Global Economy
Nations protecting favorite industries only postpones inevitable and occasionally helpful changes.

From the Archives

Why We'll Have to Wait for a Sip of Zambian Coffee

Previously filed under: Africa, Trade
Trade barriers can frustrate the efforts of even the most entrepreneurial of developing country producers to add value to their crops.

From the Archives

No Globalization, Please - We Are French!

Countries: France
Previously filed under: Europe and Middle East, General Globalization
Populist posturing comes head to head with Chirac's stealth globalization.

Breaking News

Zimbabwe: Irony of Rich Farmers Without Cash

All Africa - Fri, 05/16/2008 - 13:16
ZIMBABWE'S tobacco farmers are having cash problems. They have so much money in their pockets, but cannot buy what they need because it is in the form of cheques.

Ghana: Fisheries Act Forbids Foreign Vessels From Fishing

All Africa - Fri, 05/16/2008 - 12:22
The Ministry of Fisheries has denied allegations by a group, called the Joint Action Against Pair Trawling (JAAPT) that foreign vessels have invaded Ghana's fishing industry and all vessels plying the coastal areas of the country are engaged in pair trawling activities. It says the allegations are simply untrue.

Surplus Rice in Japan 'Could End Rice Crisis'

OneWorld Daily Headlines - Fri, 05/16/2008 - 19:44
Selling excess rice held in Japan and imported from the United States would incite a rapid drop in the global price of rice but requires immediate action from Tokyo and Washington, write former editor of The Rice Trader, Tom Slayton, and policy analyst, Peter Timmer.

Half in Ten

OneWorld Daily Headlines - Fri, 05/16/2008 - 19:44
Four prominent American social justice groups are launching a campaign to halve poverty in the United States in 10 years.

Myanmar Farmers May Miss Harvest

New York Times - Thu, 05/15/2008 - 21:34
The timing of Cyclone Nargis, which disrupted farmers as they were preparing to plant, could not have been worse.

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