Trade: A Simulation Analysis

Fresh vegetable trade between the U.S. and Mexico represents one of the most important bilateral agricultural trade categories. Fresh vegetables account for about 40 % of the total Mexican agricultural exports to the United States, well above coffee and livestock the other important agricultural exports of Mexico. U.S. imports of Mexican vegetables have rapidly grown in the last two decades, doubling their total U.S. market share since 1975 (USDA). Imports are especially significant during the Winter season, when market shares for selected crops are relatively high thus generating strong competition between U.S. and Mexican producers