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

Kym Anderson

Chapter 16 in The International Economics of Wine, 2019, pp 407-413 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In their article on the impact of the Canada-United States Free Trade Agreement (CUSFTA) on United States wine exports, Heien and Sims (1999) note that the volume of US wine exports to Canada doubled and its value more than trebled between 1988 and 1994 as CUSFTA was progressively implemented. They attribute the remarkable growth in the quantity and quality of that bilateral wine trade somewhat to the preferential removal of the import tariff on U.S. wine but mostly to the removal of some key nontariff import barriers. The latter included discriminatory listing practices (only a small subset of importable wines were listed by the monopolized liquor stores (control boards) in each Canadian province), discriminatory pricing policies (those boards marked up imported wine much more than domestic labels), discriminatory distribution practices (imported wine attracted a higher distribution service charge), and local content rules (domestic labels in British Columbia had to contain at least 80 per cent B.C. wine so as to be eligible for the discriminatory treatment favoring local wines)…

Keywords: Wine Globalization; Australia's Wine Internationalization; Wine Markets in Asia; Wine Price Distortions; Modelling Global Wine Markets (search for similar items in EconPapers)
JEL-codes: L66 O13 (search for similar items in EconPapers)
Date: 2019
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