IMPACT OF CFTA/NAFTA ON U.S. AND CANADIAN AGRICULTURE

Luther G. Tweeten, Jerry A. Sharples and Linda Evers-Smith

No 28320, Working Papers from Ohio State University, Department of Agricultural, Environmental and Development Economics

Abstract: CFTA/NAFTA is estimated annually to add $1,430 million of U.S. agricultural exports to Canada and $1,884 million of Canadian agricultural exports to the United States. Thus CFTA/NAFTA contributed an estimated 25 percent of the $5.8 billion of U.S. agricultural exports to Canada in 1995. Classical welfare analysis was used to estimate the implications of free trade in the dairy, poultry, sugar, and other industries that continue to be protected. In aggregate, consumers benefit from liberalization by nearly $1 billion per year in each country. Losses to Canadian producers are absolutely and relatively greater than to U.S. producers. Overall deadweight gains are positive to each country. The annual combined two-country addition to national income ($292 million) totals a present value of $5.8 billion when discounted in perpetuity at a 5 percent rate.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 22
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/28320/files/wp970003.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ohswps:28320

DOI: 10.22004/ag.econ.28320

Access Statistics for this paper

More papers in Working Papers from Ohio State University, Department of Agricultural, Environmental and Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().