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The Socio-Economic Impacts
- f NAFTA in Tlaxcala,
Mexico
by
Shida R. Henneberry, Professor
&
The Socio-Economic Impacts of NAFTA in Tlaxcala, Mexico by Shida - - PowerPoint PPT Presentation
The Socio-Economic Impacts of NAFTA in Tlaxcala, Mexico by Shida - - PowerPoint PPT Presentation
The Socio-Economic Impacts of NAFTA in Tlaxcala, Mexico by Shida R. Henneberry, Professor & Becky Nelson, Graduate Research Assistant Department of Agricultural Economics, Oklahoma State University In Mexico, NAFTA has Impacted:
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An industrial/Agricultural Region was Selected to:
Examine the socio-economic changes during the post-NAFTA period
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The General Objective is:
To increase the understanding of the impact of NAFTA on the interaction between the agricultural and industrial sectors at the regional and household levels A holistic evaluation of NAFTA impacts, social and economic
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The Studied Area:
Xicohtencatl Industrial Corridor Region of Tlaxcala, Mexico
The data are collected from household surveys
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The interaction between the peasant agricultural sector and the rapidly expanding industrial sector makes Tlaxcala perfect for: Analyzing NAFTA’s impact on the agri./industrial relationship in these communities.
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Agricultural Liberalization
Phasing out existing tariffs Trade Restrictions into Tariff- Rate Quotas (import sensitive ag products)
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Table I: Comparative Analysis of National and International Agricultural Prices (1992 dollars)
Product Domestic International % Corn 236.6 137.6 72.0% Beans 656.9 439.7 33.0% Barley 257.9 202.7 27.2% Tomato 1200 1687.99
- 28.9%
Oranges 244.39 1610.32
- 84.8%
Avocado 2251 6086.28
- 63.0%
Sources: Perspectivas de Comercializacion de los Productos Basicos, Mexico, Secofi, 1993. Manrrubio y Santoyo, ¿Es negocio el Campo? Revista Agronegocios, 1992. Price Price Difference
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Competitiveness:Economies of
scale, limited access to credit and technology, and reliance on traditional production practices Rural-urban migration Small agricultural holdings and marketed surplus
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Social Impacts of NAFTA Vary by:
- Age
- Gender
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Impacts on Peasant Women
- f NAFTA:
Negative:
Female compensates for absent male Double-duty (increase in ag and non-ag workload Poor work conditions in the factories
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Impacts on Peasant Women
- f NAFTA:
Positive:
Increased access to her own resources by interacting with the formal market Augmentation in overall family income
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Map I: Location of the state of Tlaxcala relative to Mexico City and Veracruz. Major highways highlighted in black. State boundaries in red.
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Xicohténcatl Industrial
- Corridor. Tlaxcala, Mexico.
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Employment Opportunities:
The region employs 22,000 people 150 factories 67% produce for exportation Xicohtencatl houses 19% of all Tlaxcala’s factories and provides 30% of employment
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Principal Industries are:
Chemical production Clothing fabrication
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Figure II: Climactic Characteristics of Western Tlaxcala.
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Table II: Summary characteristics of rural communities surrounding the industrial corridor of Xicohténcatl.
Pueblo Population Principal Crops Irrigated Area Agri. Structure Labor Migra.
Emiliano Zapata 6500 Corn, potato, haba 10% Ejido Minimal Lazaro Cardenas 2700 Lettuce, corn, carrots 74% Ejido Average Zotoluca 300 Small grains corn, haba 0% Private Extensive Capula 1500 Small grains corn, haba 0% Ejido Average Santa Fe` la Troje 400 Small grains corn, haba 0% Ejido Extensive
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Table III: Survey results
Aggregate Survey Questions: Results Household size 7.5 Gender composition male 46% female 54% Age composition 0-9 26% 10-18 12% 18-28 32% 29-up 33% Employment campo 44% household 41% industry 7%
- ther
7% Land Ownership Yes 100% No 0% Plot size (hectares) 4.24 Crop areas corn 63% beans 16% lettuce 44% Other Vegetables 53% grains 18% Water availability irrigation 0% temporal 100% % for household use corn 80% beans 100% potato 100%
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Production Characteristics:
Labor and capital requirements vary: Rain fed vs. irrigated Organic vs. inorganic Land preparation (tractor vs. animal power)
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Corn field being prepared for planting with use of animal power.
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Table IV: Yield differentials on irrigated and temporal lands.
Crop Yields (ton/hectare): Rainfed Irrigation Corn 1.5 3 Haba 1 6 Potatoes 2.5 9 Small Grains 2.5 3
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Figure IX: Mexican producer prices for commodities produced in the Xicohtencatl agricultural areas, 1980-1995. Source: Food and Agricultural Organization of the U.N., 1999.
2 4 6 8 10 12 14 16 18 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Year New Pesos
Lettuce Carrots Oats Wheat Barley Corn Haba, Dry Potatoes
Figure III: Mexican Prices for Commodities Produced in the Xicohtencatl Agricultural Areas, 1980-1995
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Figure XXV: Total Employment in the Industrial Corridor of Xicohtencatl, 1993-
- 1999. Source: Fideocomiso Industrial de
Xicohtencatl, 99.
2000 4000 6000 8000 1993 1994 1995 1996 1997 1998 1999
Figure IV: Total Employment in the Industrial Corridor of Xicohtencatl, 1993- 1999
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Figure XXVI: Number of Operating Factories Established within the Xicohtencatl Industrial Area, 1979-1998. Source: Fideocomiso Industrial de Xicohtencatl, 1999.
5 10 15 20 25 30 35 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997
Figure V: Number of Operating Factories
- Est. within the Xicohtencatl Industrial
Area, 1979-1998.
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The Economic Impacts of NAFTA A Programming Approach
Inclusion of the unpaid female labor activities
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Summary and Conclusions:
While falling ag prices have harmed most families (except for irrigated farmers), increased industrialization has offset this impact Augmentation of female workload Reduction of risks associated with ag process
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The Results Vary by:
Location Land Resource endowments
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While the development of industrial corridors was associated with many concerns, it did appear to have increased the overall economic viability of the rural household while reducing agricultural risk.
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