Trade creation and trade diversion in the Canada - United States Free Trade Agreement

Kimberly Clausing

Canadian Journal of Economics, 2001, vol. 34, issue 3, 677-696

Abstract: In this paper the changes in trade patterns introduced by the Canada-United States Free Trade Agreement are examined. Variation in the extent of tariff liberalization under the agreement is used to identify the impact of tariff liberalization on the growth of trade both with member countries and non-member countries. Data at the commodity level are used, and the results indicate that the Canada-United States Free Trade Agreement had substantial trade creation effects, with little evidence of trade diversion.

JEL-codes: F13 F14 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (156)

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