NAFTA has been beneficial to the U.S. beef industry due primarily to the U.S. beef trade gain with Mexico. That is, without Mexican trade
concessions under NAFTA, U.S. exports of table cut beef to Mexico
would have been considerably less. However, since 1994 the United
States has substantially increased its beef trade deficit with Canada.
Concerning beef trade with all countries, the United States has
decreased its net deficit position. This resulted in increased cattle
prices and revenues between the pre- NAFTA and post-NAFTA periods.
Much of this overall benefit, besides
increased U.S. beef exports to the Pacific Rim countries, was aided by
the net effects of Mexican beef trade. That is, Mexico prevented the net
negative changes in fed cattle price ($0.82/cwt) and feeder cattle price
($0.47/cwt) under NAFTA from being more negative.