Analyze the impact of NAFTA on Mexican corn farmers. Why did so many Mexican corn farmers lose their livelihoods as a consequence of NAFTA?(1 point) Responses NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. Changes in consumer food preferences from corn toward wheat reduced demand. Changes in consumer food preferences from corn toward wheat reduced demand. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. Mexican farmers could not compete with government-subsidized U.S. corn.

Answer 1

The impact of NAFTA (North American Free Trade Agreement) on Mexican corn farmers was significant and largely detrimental, primarily due to the competition with heavily subsidized U.S. corn. The most accurate response to why many Mexican corn farmers lost their livelihoods as a consequence of NAFTA is:

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

Here's an analysis of why this occurred:

1. Subsidization of U.S. Agriculture: U.S. corn farmers receive substantial government subsidies, which allow them to produce corn at a lower cost. When NAFTA lowered trade barriers, U.S. corn flooded into the Mexican market at lower prices than many local farmers could afford to produce their corn.

2. Market Saturation and Price Competition: The influx of subsidized U.S. corn led to oversupply in the Mexican market, causing corn prices to plummet. Mexican farmers, many of whom have limited resources and cannot scale production like those in the U.S., found it impossible to compete in terms of pricing.

3. Economic Displacement: Many small-scale Mexican farmers rely on corn production for their livelihoods. The sharp decline in prices forced many out of business, leading to economic displacement. This loss of income drove families to migrate to urban areas or even to the U.S. in search of better opportunities.

4. Failure of Farm Policy Support: While there were efforts to support Mexican agriculture through some programs, they were often insufficient against the backdrop of robust U.S. agricultural subsidies. The Mexican government's options to counterbalance these effects were limited, and many farmers lacked access to capital or technology to improve their competitiveness.

5. Long-term Sustainability: The structural changes brought about by NAFTA not only affected immediate incomes but also undermined the long-term viability of corn farming in Mexico. The transition away from traditional agricultural practices placed additional strain on farmers who could not adapt quickly enough to changing market dynamics.

In summary, while some superficial benefits may have arisen for certain sectors, the net result of NAFTA for many Mexican corn farmers was detrimental, mainly because they were unable to compete with subsidized U.S. corn, leading to significant job losses and economic hardship.