Trade Reforms and Changes in Prices for Maize Producers in Mexico

José María Contreras Castillo
2009 Perfiles Latinoamericanos  
This paper uses a method to break down the changes in domestic prices for maize producers in Mexico during the 1994–2005 period as well as to measure the relative contribution of the variations in the international price, the exchange rate movements and the modification of the trade policy. One can conclude that the elimination of import permits, combined with the Mexican government's decision to apply zero import fees and not to implement the agreed import duty elimination timeline, are the
more » ... n factors that explain the reduction of domestic prices for maize producers. Nevertheless, in the context of a greater transmission of prices, the reduction in the maize international price and the appreciation of the real exchange rate also contribute to this fall.
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