The impact of the North American Free Trade Agreement (NAFTA) on Mexican corn farmers was significant, leading to widespread loss of livelihoods for many. The most compelling explanation for this trend is that Mexican farmers could not compete with government-subsidized U.S. corn.
When NAFTA came into effect in 1994, it eliminated tariffs and barriers to trade between the United States, Canada, and Mexico. One of the crucial sectors affected was agriculture, particularly corn, which is a staple crop in Mexico. The United States, benefiting from extensive government subsidies, was able to produce corn at a much lower cost than Mexican farmers. As a result, U.S. corn flooded the Mexican market, often being sold at prices lower than what local farmers could afford to compete with.
This led to a significant decline in the income of many Mexican corn farmers, pushing them out of the market and forcing them to seek alternative means of livelihood, including migration to urban areas or the U.S. for work.
The other options presented, such as NAFTA providing subsidies to Mexican farmers or changes in consumer preferences, did not significantly contribute to the challenges faced by Mexican corn farmers. The notion that manufacturing jobs processing corn left Mexico for the U.S. also does not adequately explain the core issue of market competition and pricing dynamics resulting from U.S. agribusiness policies and subsidies. Hence, the primary factor in the loss of livelihoods for Mexican corn farmers due to NAFTA was the inability to compete with subsidized U.S. corn.
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