The favorable Mexico-United States exchange rate has been cited as an important factor for the growth in exports of agri-food products from Mexico to the United States. Some analysts have also emphasized the importance of NAFTA and the exchange rate volatility in the performance of the Mexico-US agri- food trade. An important policy question is the extent to which changes in the Mexico-US exchange rate and its volatility have contributed to the growth in agri-food trade between these two countries. The results from cointegration analysis show that while changes in exchange rate have a...