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Briefing Rooms

Canada: Recommended Readings

Increased U.S. Imports of Fresh Fruit and Vegetables have allowed U.S. consumers to eat more fruit and vegetables and enjoy year-round access to various fresh produce. Primary suppliers are the North American Free Trade Agreement region for fresh vegetables, the Southern Hemisphere countries for off-season fresh fruit, and equatorial countries for bananas.

Recent Agricultural Policy Reforms in North America identifies countercyclical assistance as the common thread in the recent agricultural policy innovations of the United States, Mexico,and Canada. In other areas, the three countries are pursuing distinct agricultural policies, reflecting differing national objectives and economic contexts.

NAFTA at 13: Implementation Nears Completion evaluates the impact of the North American Free Trade Agreement (NAFTA) as implementation of the accord draws to a close. Just a handful of the agricultural trade restrictions scheduled to be phased out under NAFTA remain, and these are scheduled for elimination in 2008.  Once NAFTA is fully implemented, the member countries—Canada, Mexico, and the United States—will need to exercise their national autonomy, either individually or in concert, to achieve further integration of their agricultural markets.

Canada: A Macroeconomic Study of the United States’ Most Important Trade Partner reports that Canada is a large exporter to the United States of critical raw materials—including natural gas, petroleum, and wood products—and a substantial importer of finished industrial and consumer goods. Agricultural trade between the two countries continues to grow in importance, reflecting trade liberalization and greater integration of agricultural markets.

Market Integration of the North American Animal Products Complex examines the economic integration of the beef, pork, and poultry industries of Mexico, Canada, and the United States over the past two decades. Sanitary barriers, which are designed to protect people and animals from diseases, are among the more significant barriers to more complete integration of meat and animal markets.

North America Moves Toward One Market describes how the agricultural sectors of Canada, Mexico, and the United States are increasingly behaving as if they form a single market. For example, many livestock in North America have lived in at least two of these countries, and U.S. consumers are purchasing fresh produce from both Mexico and Canada. NAFTA at 11: The Growing Integration of North American Agriculture provides additional information on this subject, as it relates to the North American Free Trade Agreement (NAFTA).

Recent Agricultural Policy Reforms in North America identifies countercyclical assistance as the common thread in the recent agricultural policy innovations of the United States, Mexico,and Canada. In other areas, the three countries are pursuing distinct agricultural policies, reflecting differing national objectives and economic contexts.

North American Greenhouse Tomatoes Emerge as a Major Market Force reviews the rapid growth of the greenhouse tomato industry in North American and its impact on the field tomato industry. Canada is the biggest producer, followed by the United States and Mexico. For the full report, see Greenhouse Tomatoes Change the Dynamics of the North American Fresh Tomato Industry.

NAFTA at 11: The Growing Integration of North American Agriculture reports that the agricultural sectors of Canada, Mexico, and the United States have become much more integrated in the 11 years since implementation of the North American Free Trade Agreement (NAFTA). U.S. direct investment in the Mexican processed food sector has increased, and sales by Canadian, Mexican, and U.S. multinational food companies throughout the NAFTA region have risen, giving consumers access to a wider variety of products.

Market Integration in the North American Hog Industries reports that about 8 percent of the hogs slaughtered in the United States in 2004 will originate in Canada, many more than 10 years ago. Canadian hogs have flowed into the United States in response to significant structural changes in the U.S. pork industry, policy changes in Canada, and a strong U.S./Canadian dollar exchange rate. For an Amber Waves article on this topic, see U.S.-Canadian Hog Trade: Market Integration at Work.

U.S. Agriculture and the Free Trade Area of the Americas (FTAA) examines the free trade area under negotiation among the United States and 33 countries in the Western Hemisphere. The FTAA will progressively liberalize trade and investment in the region, leading to an estimated 6-percent increase in annual U.S. agricultural exports to the Hemisphere and a 3-percent increase in annual U.S. agricultural imports from the Hemisphere.

North American Agricultural Market Integration and Its Impact on the Food and Fiber System reviews the increasing integration of agricultural markets in Canada, Mexico, and the United States that has resulted in more efficient use of continental resources. The North American Free Trade Agreement (NAFTA), technological change, and fundamental forces of supply and demand have helped bring about a more unified North American agricultural market.

Many factors determine the Structure of the Global Markets for Meat, including the relative availability of resources for raising and processing animals for meat. Countries' preferences for various cuts of meat provide opportunities for international trade.

International Evidence on Food Consumption Patterns analyzes expenditures across 114 countries on major consumption categories, including food and different food subcategories. Results indicate poorer countries are more responsive to price and income changes and also allocate larger shares of their total budget to necessities such as food.

NAFTA's Impacts on U.S. Agriculture: Trade and Beyond concludes that NAFTA has generally benefited U.S. agriculture and related industries. NAFTA contributed to a more than doubling of U.S. agricultural trade with Canada and Mexico in the 1990s. Beyond direct trade impacts, NAFTA established rules and institutions that mitigate potential trade frictions, promote foreign direct investment, and facilitate discourse on environmental issues.

Effects of North American Free Trade Agreement on Agriculture and the Rural Economy examines developments in trade, policies, dispute resolution, employment, and investment. The trade assessment focuses on 35 commodities and commodity groupings. Also addressed are recent developments in U.S.-Mexico transportation and the relationship between trade liberalization and the environment.

Canada's Subsidized Dairy Exports: The Issue of WTO Compliance reviews Canadian dairy policy in light of a July 2001 World Trade Organization (WTO) compliance panel ruling against Canada in a dispute over the country's subsidized dairy exports. The panel found Canada's dairy export subsidies inconsistent with its WTO commitments. Since this article was published, the WTO Appellate Body ruled in January 2002 that it could not back the Compliance Panel's ruling because it had used an incorrect price standard to conclude that subsidization was taking place. The Panel subsequently re-heard the case using new data and again ruled against Canada. Canada appealed and, in December 2002, the WTO Dispute Settlement Body ruled that the Canadian program still constituted a WTO-illegal export subsidy. In May 2003, Canada entered into an agreement with the United States and New Zealand to settle the dispute resolution process and reduce dairy exports to within their WTO export subsidy limits.

U.S.-Canada Wheat Trade: The Intersection of Geography and Economics reviews the dramatic increase in U.S. imports of Canadian wheat in the early 1990s and assesses the factors involved, among them geography, weather, and market economics.

Canada's Agriculture: 5 Years After the End of Transportation Subsidies assesses the impact of the 1995 repeal of Canada's Western Grain Transportation Act. The repeal raised costs of transporting grains to export points, diversified agricultural production in Western Canada, and provided greater incentives for feed grains to remain in the region to support the livestock sector.

 

For more information, contact: John Wainio or Steven Zahniser

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Updated date: September 26, 2007