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Published on The Communication Initiative Network (http://www.comminit.com)

Trade Regimes and Rural Poverty


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Text Date: 

March 7 2003

Text Date: 

March 7 2003

Article Text: 

In 2001:

  • 214 million people, nearly 43% of the Latin American population live in poverty.
  • 54 million people suffer from malnutrition (11% of the total population), the majority of whom are women and children.
  • 123 million people (25% of the total population) live in rural areas and depend directly or indirectly on agriculture.
  • 77 million of these live in poverty, 47 million live in extreme poverty.

In 2002:

  • The number of people living in poverty is expected to increase to 221 million.

Mexico Case Study:

  • Basic grains imports into Mexico under the North American Free Trade Agreement (NAFTA) doubled between 1994 and 2001 to 110 million tons with a value of $18.5 billion.
  • In the case of corn, Mexico imports an average of 6 million tons annually, compared to 2.5 million tons prior to NAFTA.
  • The US exports wheat at 46%, and corn at 20%, below their production price.
  • Mexico's increasing reliance on imports has led to actual prices to Mexican producers falling between 35% and 60%.
  • Today, the price of corn for producers is $80 per ton though production cost is $120 per ton - domestic production has stagnated, food dependency has increased and the livelihoods of 2.5 million corn producers have been affected.
  • The price reduction has not benefited consumers and the price of tortillas, the base diet of the majority of Mexicans, has risen from 0.80 pesos/kg in 1993 to 5.00 pesos/kg in 2002.


Source URL:
http://www.comminit.com/en/node/17064