Trade Diversification Away from the U.S. or North American Customs Union? A Review of Canada’s Trade Policy Options
AbstractThis study examines Canada’s key strategic trade policy options – whether pushing for further economic integration with the U.S., or diversifying to non-U.S. markets and reducing the degree to which Canada’s economy depends on the U.S. In particular, this study compares the economic benefits of implementing a North American customs union with the benefits of increasing Canada’s trade with either emerging countries (e.g., India, China, Brazil) or with advanced partners such as Europe and Japan. The main conclusion is that there may be considerable benefit to Canada of diversifying some of its trade away from the United States provided that countries with more youthful populations and rapid growth, such as India, are targeted. Diversification to older countries such as Europe and Japan would not be beneficial. The analysis is based on a series of recent policy-modeling studies by the authors examining the economic impacts of diverse trade policies options in global economy models, taking also into consideration an important feature of the 21st century, the demographic changes around the world that accompany the globalization process for goods and services, capital and labor.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Ottawa, Department of Economics in its series Working Papers with number 1205E.
Length: 54 pages
Date of creation: 2012
Date of revision:
Contact details of provider:
Postal: PO Box 450, Station A, Ottawa, Ontario, K1N 6N5
Phone: (613) 562-5753
Fax: (613) 562-5999
Web page: http://www.socialsciences.uottawa.ca/eco/eng/index.asp
More information through EDIRC
Canadian Trade Policy; Geographical Trade Diversification; Population Ageing; Globalization.;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-10 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karl Meilke & James Rude & Steven Zahniser, 2008. "Is 'NAFTA Plus' an Option in the North American Agrifood Sector?," The World Economy, Wiley Blackwell, vol. 31(7), pages 925-946, 07.
- Rod Falvey & Geoff Reed, .
"Rules of Origin as Commercial Policy Instruments,"
EPRU Working Paper Series
97-20, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Ghosh, Madanmohan & Rao, Someshwar, 2005. "A Canada-U.S. customs union: Potential economic impacts in NAFTA countries," Journal of Policy Modeling, Elsevier, vol. 27(7), pages 805-827, October.
- P. J. Lloyd, 1993. "A Tariff Substitute for Rules of Origin in Free Trade Areas," The World Economy, Wiley Blackwell, vol. 16(6), pages 699-712, November.
- Cadot, Olivier & Kukenova, Madina & Strauss-Kahn, Vanessa, 2010.
"OECD imports : diversification and quality search,"
Policy Research Working Paper Series
5285, The World Bank.
- Céline CARRERE & Olivier CADOT & Vanessa STRAUSS-KHAN & Madina KUKENOVA, 2009. "OECD Imports: Diversification and quality search," Working Papers 200909, CERDI.
- Olivier Cadot & Céline Carrere & Madina Kukenova & Vanessa Strauss-Khan, 2011. "OECD Imports: Diversification and quality search," Working Papers halshs-00554319, HAL.
- Patrick Georges, 2010. "Dispensing with NAFTA Rules of Origin? Some Policy Options," The World Economy, Wiley Blackwell, vol. 33(11), pages 1606-1637, November.
- AUGIER Patricia & GAZIOREK Michael & LAITONG Charles, 2004.
"The Impact of Rules of Origin On Trade Flows,"
- Fougere, Maxime & Mercenier, Jean & Merette, Marcel, 2007. "A sectoral and occupational analysis of population ageing in Canada using a dynamic CGE overlapping generations model," Economic Modelling, Elsevier, vol. 24(4), pages 690-711, July.
- Robin Banerjee & William B.P. Robson, 2009. "Faster, Younger, Richer? The Fond Hope and Sobering Reality of Immigration's Impact on Canada's Demographic and Economic Future," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 291, July.
- Patrick Georges & Marcel Mérette & Qi Zhang, 2012. "Toward a North American Security Perimeter? Assessing the Trade and FDI Impacts of Liberalizing 9/11 Security Measures," Working Papers 1204E, University of Ottawa, Department of Economics.
- Patrick Georges, 2008. "Liberalizing NAFTA Rules of Origin: A Dynamic CGE Analysis," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 672-691, 09.
- Mérette Marcel & Georges Patrick, 2010. "Demographic Changes and the Gains from Globalisation: An Analysis of Ageing, Capital Flows, and International Trade," Global Economy Journal, De Gruyter, vol. 10(3), pages 1-39, October.
- William B.P. Robson, 2007. "Stuck on a Spoke: Proliferating Bilateral Trade Deals are a Dangerous Game for Canada," e-briefs 47, C.D. Howe Institute.
- Patrick Georges & Marcel Mérette & Aylin Seckin§, 2009. "Should Canada Diversify its Trade Pattern? An Overlapping- Generations CGE Analysis of Trade and Ageing," Working Papers 0906E, University of Ottawa, Department of Economics.
- Börsch-Supan, Axel & Ludwig, Alexander & Winter, Joachim, 2004. "Aging, Pension Reform, and Capital Flows:," Sonderforschungsbereich 504 Publications 04-65, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- Patrick Georges, 2007.
"Toward a North American Customs Union Rules of Origin Liberalization Matters More than a Common External Tariff for Canada,"
0704E, University of Ottawa, Department of Economics.
- Georges, Patrick, 2008. "Toward a North American customs union: Rules of origin liberalization matters more than a common external tariff for Canada," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 304-318, December.
- Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Ritchot).
If references are entirely missing, you can add them using this form.