With NAFTA renegotiations about to begin, Public Citizen has compiled the latest information on how NAFTA’s outcomes measure up to its proponents’ promises. This is the third of a four-part expose.
Agriculture is supposed to be the winner under NAFTA, right? Um, no: the U.S. agriculture trade balance with NAFTA partners Mexico and Canada fell from a $2.5 billion surplus in the year before NAFTA to a $6.4 billion deficit in 2016. The rising trade deficit in agricultural products has contributed to the loss of more than 200,000 small family farms. Since NAFTA has taken effect, one out of every ten small farms has disappeared.
Yes, we exported much more corn to Mexico since NAFTA. But our NAFTA trade deficits in beef/live cattle and vegetables outweigh those gains. And, here’s another conventional wisdom buster: even without NAFTA U.S. corn would not face tariffs in Mexico. Mexico eliminated tariffs on corn for all countries in 2008.
But government data reveals that since 1993, U.S. agricultural imports from NAFTA countries have grown much quicker than U.S. exports to those same countries, resulting in massive agricultural trade deficits. Since the Great Recession, U.S. food imports have grown twice as fast as U.S. food exports.
To read more on NAFTA’s effects on U.S. agriculture, please click here.