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Agricultural Trade Liberalization and Capital Flows in the Americas


In the second of three related papers, the authors develop a model that estimates the effects on prices, outputs, and trade flows arising from the elimination of U.S. import tariffs on contemplate agricultural commodities from Latin America. Eight agricultural commodities and six countries were selected for analysis. The authors also assess how the increased trade flows from Latin America to the United States are likely to create additional investment in the agricultural sector in Latin American countries.

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