Regional Trade Agreements Reshape Agricultural Trade Flows in the Americas
Regional Trade Agreements in the Western Hemisphere were studied to see how they affect agricultural trade. The researchers used a model to analyze trade flows between 24 countries. They found that some agreements had a positive impact on trade creation, while others had a negative impact on trade diversion. NAFTA had a significant positive effect on trade diversion. Overall, the agreements had a greater impact on trade between different industries rather than within the same industry. GDP and distance also played a role in trade flows. Further research may confirm the positive effects of these agreements on agricultural trade over time.