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Analyzing the Agricultural Trade Impacts of the Canada-Chile Free Trade Agreement

Listed author(s):
  • Malhotra, Nisha
  • Stoyanov, Andrey

In this paper we study the agricultural trade impacts of the Canada Chile Free Trade Agreement (CCFTA). We find that the effect of the CCFTA on Chilean agricultural exports to Canada is large and positive. We estimate that approximately one-half of a 90 percent increase in Chilean exports to Canada can be attributed to trade preferences that the country received under the agreement. We found no effect of the agreement on Canadian exports to Chile. As far as we know, our paper is among the few that carries out a detailed empirical analysis of \ the effect of the FTA on agriculture. Most empirical papers that have studied the trade impact of FTAs rely on country-wide gravity models and aggregate trade data. These aggregate analyses can hide negative effects of FTAs on some sectors (like agriculture) where a country may have a comparative disadvantage. Our approach is industry-focused and differs from the mainstream literature analyzing FTAs.

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File URL: http://purl.umn.edu/46628
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Paper provided by Canadian Agricultural Trade Policy Research Network in its series Working Papers with number 46628.

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Date of creation: Oct 2008
Handle: RePEc:ags:catpwp:46628
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  8. John Gilbert & Robert Scollay & Bijit Bora, 2011. "Assessing Regional Trading Arrangements in the Asia-Pacific," Working Papers 200101, Utah State University, Department of Economics and Finance.
  9. Caroline Freund, 2000. "Different Paths to Free Trade: The Gains from Regionalism," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1317-1341.
  10. Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade 0109001, EconWPA.
  11. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
  12. Barry E. Prentice & Zhaokun Wang & Hector J. Urbina, 1998. "Derived Demand for Refrigerated Truck Transport: A Gravity Model Analysis of Canadian Pork Exports to the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(3), pages 317-328, November.
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