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Effects of Increasing Panama Canal Toll Rates on U.S. Grain Exports

Stephen Fuller, Larry Makus and William Gallimore

Journal of Agricultural and Applied Economics, 1984, vol. 16, issue 2, 9-20

Abstract: Some believe Panama Canal toll rates will increase dramatically as Panama's sovereignty over the Canal becomes complete at the end of this century. This paper focuses on the ability of Panama Canal management to extract additional toll revenues from United States grain traversing the Canal and the impact of increased toll rates on export grain flows. Analyses show toll rates established by a revenue-maximizing Canal management would exceed historical and current rates. A monopolizing Canal operator would have moderately increased Pacific port exports in the mid-1970's; whereas, in the 1979-82 period, Pacific port flows would have exceeded historical level.

Date: 1984
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