However, Mexico is allowing enough US corn to enter the country without adding the tariff that corn prices in Mexico do get depressed and the farmers raise hell. The Mex Govt raises the tariff temporarily and the cycle repeats.
The justification for not adding the allowable tariffs is to keep consumer prices down.
It is commonly stated that NAFTA created the farm crisis in Mexico, but actually the farm/food crisis created NAFTA.
Mexico has had this looming food crisis for many years. It is attributable to the fact that over half the cultivation in Mexico is on the ag collectives known as "ejidos" that are small acreage and very unproductive.
At about the same time NAFTA was signed, the Mex Govt put in place the method by which the ejidos would be dis-incorporated and title on the collective lands would be passed to the individual farmers. The farmers would then be able to buy, sell, or lease these lands.
The inflow of US capital associated with NAFTA would facilitate these small ag plots being combined into large, modern farming operations, which would enable Mexico to become more able to grow their own food.
Market economist DeSoto was a consultant in devising this plan.
For various reasons, this plan has not proceeded as planned and 2008 is getting closer.
Let me parse it. You say the Mexico will grow more own food? Are you saying that Mexican government is to set the state farms? But you said that there is the influx of US capital "combining" small farms into large?
Did you mean that US based or transnational agrobusiness is buying out/pricing out small Mexican farmers? Where these farmers will go? Is it good for Mexico (or US) when family farms are eradicated?