the reciprocity treaty of 1883: a lost opportunity?

Abstract

In January 1883, the representatives ofMexicoand theUnited Statessigned a protocol of a trade reciprocity treaty which would deregulate the exchange of some products. However, due to a strong opposition of theLouisianasugar producers, the North American senate did not ratify the protocol, leaving the treaty without effect in spite of the several extensions to achieve its final approval. The consequences of this failure had little influence over the increasing integration of both economies through commerce. However, from a dynamic perspective, this paper argues that the rejection of the reciprocity treaty diminished the incentives to invest in sugar production and exportation, an opportunity that other Latin American producers did take advantage of.