POLICIES TO IMPROVE COMPETITIVENESS OF MAIZE AND BEAN PRODUCTION IN MÉXICO

Abstract

One problem that the national production of maize (Zea mays L.) and bean (Phaseolus vulgaris L.) is facing in México is the lack of competitiveness with respect to the imports. It is expected that by the year 2008 the national production will only be capable to supply 72.7 and 87.5 % of the national consumption of these crops, and that the imports will supply the difference. With the purpose to determine the factors that could revert the previous tendency, a spatial and intertemporal equilibrium model was used for both crops. The results indicate that a 30 % tariff and a reduction in the transportation and production costs of 30 %, with respect to those of the 1998-2000 period, would increase the national production of maize to where it would be able to supply 99.1 % of the national consumption. A 27 % tariff above the international prize and a diminution of 30 and 10 % in the transportation and production costs, with respect to those of the 2001-2003 period, would allow the self-sufficiency of the beans.