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Impact Of Cfta/Nafta On U.S. And Canadian Agriculture

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Listed:
  • Tweeten, Luther G.
  • Sharples, Jerry A.
  • Evers-Smith, Linda

Abstract

CFTA/NAFTA is estimated annually to add $1,430 million of U.S. agricultural exports to Canada and $1,884 million of Canadian agricultural exports to the United States. Thus CFTA/NAFTA contributed an estimated 25 percent of the $5.8 billion of U.S. agricultural exports to Canada in 1995. Classical welfare analysis was used to estimate the implications of free trade in the dairy, poultry, sugar, and other industries that continue to be protected. In aggregate, consumers benefit from liberalization by nearly $1 billion per year in each country. Losses to Canadian producers are absolutely and relatively greater than to U.S. producers. Overall deadweight gains are positive to each country. The annual combined two-country addition to national income ($292 million) totals a present value of $5.8 billion when discounted in perpetuity at a 5 percent rate.

Suggested Citation

  • Tweeten, Luther G. & Sharples, Jerry A. & Evers-Smith, Linda, 1997. "Impact Of Cfta/Nafta On U.S. And Canadian Agriculture," Working Papers 28320, Ohio State University, Department of Agricultural, Environmental and Development Economics.
  • Handle: RePEc:ags:ohswps:28320
    DOI: 10.22004/ag.econ.28320
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    References listed on IDEAS

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    1. Unknown, 1996. "Foreign Agricultural Trade of the United States Calendar Year 1995 Supplement," Foreign Agricultural Trade of the United States (FATUS) 164397, United States Department of Agriculture, Economic Research Service.
    2. Sullivan, John & Wainio, John & Roningen, Vernon, 1989. "A Database For Trade Liberalization Studies," Staff Reports 278178, United States Department of Agriculture, Economic Research Service.
    3. Normile, Mary Anne & Goodloe, Carol A., 1988. "U.S.-Canadian Agricultural Trade Issues: Implications For The Bilateral Trade Agreement," Staff Reports 278028, United States Department of Agriculture, Economic Research Service.
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