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The Welfare Impacts of U.S. Trade Restrictions against the Canadia n Softwood Lumber Industry: A Spatial Equilibrium Analysis

Roy Boyd and Kerry Krutilla

Canadian Journal of Economics, 1987, vol. 20, issue 1, 17-35

Abstract: In this paper the authors estimate the production and welfare impacts of various U.S. trade restrictions on Canadian lumber. After building a model which incorporates the regional character of the North American lumber market, the authors simulate a variety of tariffs and quotas now advocated by a number of U.S. lawmakers. They find that the tariff losses incurred by Canadian producers could be substantial, depending on the elasticity of their export supply. Voluntary restraint agreements, however, might lead to Canadian gains as high as 40 percent of their preexisting profits.

Date: 1987
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