Economics & Finance / Macroeconomics / International Trade & Globalization

How US Food Exports Made Mexico 1 Million Women Obese: NAFTA's Hidden Cost

Osea Giuntella, Matthias Rieger, Lorenzo Rotunno

Between 1988 and 2012, Mexico's female obesity rate skyrocketed from 10% to 35%. A groundbreaking NBER study by economists Osea Giuntella, Matthias Rieger, and Lorenzo Rotunno reveals a shocking culprit: food trade from the US. Using shift-share analysis and instrumental variables, they found that American food imports caused up to 1 million additional obese women, explaining 10% of the rise. The mechanism? Cheap, unhealthy processed foods—like snacks, sugary drinks, and sauces—flooded Mexico, slashing prices by 3% to 14%, while healthy foods stayed expensive. This isn't just about weight; it's about how globalization exports health crises. Watch to uncover the data, the science, and the policy implications.