Barter in Mexican Cotton—A New Concept in International Trade?

Abstract

The United States Department of Agriculture has resorted to limited “dumping” activities in the overseas market in order to dispose of its cotton surplus. This action has had adverse effects on several small, cotton-producing countries, such as Mexico. Mexican cotton producers have attempted to solve their problem by using a barter system to increase cotton sales. This article analyzes the effects of the American “dumping” program on the Mexican economy and on world multilateral trade patterns.