The Impact of the Canada-United States Free Trade Agreement on U.S. Wine Exports

Dale Heien and Eric N. Sims

American Journal of Agricultural Economics, 2000, vol. 82, issue 1, 173-182

Abstract: On 1 January 1989 the Canada-United States Free Trade Agreement went into effect. The agreement reduced the restrictions on the importation and marketing of wine produced in the United States. This article analyzes the impact of this lessening on United States wine exports to Canada. A demand relation for United States exports to Canada is estimated and then used to decompose the effects into their proximate causes. These causes are (a) own-price and exchange rate effects, (b) substitute price and exchange rate effects, (c) changes in real income in Canada, (d) tariff removal effects, and (e) removal of nontariff trade barriers by Canada. Copyright 2000, Oxford University Press.

Date: 2000
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