Asked by Devin Harris
How did the North American Free Trade Agreement affect the Mexican agricultural industry?
Prices in Mexico increased due to increased tariffs on agricultural goods from the United States.
Many Mexicans lost their agricultural jobs due to increased competition from the United States.
Mexican agriculture expanded as farmers began shipping more goods to the United States.
Mexican agricultural trade declined due to the agreement's quotas on trade with the United States.
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Correct answer: Many Mexicans lost their agricultural jobs due to increased competition from the United States.
Why: NAFTA eliminated many tariffs and opened Mexican markets to cheaper, often subsidized U.S. agricultural imports (not increased tariffs). That led to sharp competition for small-scale farmers—especially corn producers—causing price pressure, loss of incomes, and migration out of rural areas. While some commercial Mexican farmers expanded exports of fruits and vegetables to the U.S., those gains did not offset widespread job losses among smallholders. The other options are therefore incorrect.
Why: NAFTA eliminated many tariffs and opened Mexican markets to cheaper, often subsidized U.S. agricultural imports (not increased tariffs). That led to sharp competition for small-scale farmers—especially corn producers—causing price pressure, loss of incomes, and migration out of rural areas. While some commercial Mexican farmers expanded exports of fruits and vegetables to the U.S., those gains did not offset widespread job losses among smallholders. The other options are therefore incorrect.
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