Analyze the impact of NAFTA on Mexican corn farmers. Why did so many Mexican corn farmers lose their

Question

livelihoods as a consequence of NAFTA? (1 point)

Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for
Mexican-grown corn.

O NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market.

Mexican farmers could not compete with government-subsidized U.S. corn.

Changes in consumer food preferences from corn toward wheat reduced demand.

Answer 1

The correct analysis regarding the impact of NAFTA on Mexican corn farmers is that Mexican farmers could not compete with government-subsidized U.S. corn.

When NAFTA (North American Free Trade Agreement) was implemented in 1994, it opened up the Mexican market to U.S. agricultural products, including corn. U.S. corn farmers received significant subsidies from the U.S. government, allowing them to sell corn at lower prices in the Mexican market. This resulted in an influx of cheaper, subsidized corn from the United States, which outcompeted local Mexican farmers who were unable to match the pricing of the imported corn.

As a result, many Mexican corn farmers lost their livelihoods because they could not sustain their production in the face of these lower prices. Additionally, the decreased demand for locally produced corn led to a shift in agricultural practices and economic instability among farmers who relied heavily on corn as their primary crop. Overall, the structural imbalances created by NAFTA significantly impacted the livelihoods of many Mexican corn farmers.