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Effects of Increasing Panama Canal Toll Rates on U.S. Grain Exports

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  • Fuller, Stephen
  • Makus, Larry
  • Gallimore, William

Abstract

Some believe Panama Canal toll rates will increase dramatically as Panama's sovereignty over the Canal becomes complete at the end of this century. This paper focuses on the ability of Panama Canal management to extract additional toll revenues from United States grain traversing the Canal and the impact of increased toll rates on export grain flows. Analyses show toll rates established by a revenue-maximizing Canal management would exceed historical and current rates. A monopolizing Canal operator would have moderately increased Pacific port exports in the mid-1970's; whereas, in the 1979-82 period, Pacific port flows would have exceeded historical level.

Suggested Citation

  • Fuller, Stephen & Makus, Larry & Gallimore, William, 1984. "Effects of Increasing Panama Canal Toll Rates on U.S. Grain Exports," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 9-20, December.
    • Handle: RePEc:cup:jagaec:v:16:y:1984:i:02:p:9-20_01
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    Cited by:

    1. Javier Ho & Paul Bernal, 2021. "Estimating a global demand model for soybean traffic through the Panama Canal," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-23, December.
    2. Moon, Sang & Koo, Won W., 2006. "Effects of the Panama Canal on U.S. Competitiveness on the World Soybean Market," 2006 Annual meeting, July 23-26, Long Beach, CA 21418, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Viscencio-Brambila, Hector & Fuller, Stephen W., 1986. "Effects Of Port User Fees On Export Grain Flow Patterns," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-13, December.

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