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Rent Seeking: The Potash Dispute between Canada and the United States

Author

Listed:
  • Valerie J. Picketts
  • Andrew Schmitz
  • Troy G. Schmitz

Abstract

Despite the Canada-United States Free Trade Agreement, border disputes involving agricultural trade are common. A theoretical basis for the 1987 U.S. countervailing duty case against Canadian exports of potash is developed using excess capacity arguments. Empirically, within a rent-seeking context, the U.S. potash producers gained far less from their legal action against Canada than did U.S. farmers who are significant users of Canadian potash.

Suggested Citation

  • Valerie J. Picketts & Andrew Schmitz & Troy G. Schmitz, 1991. "Rent Seeking: The Potash Dispute between Canada and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 255-265.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:2:p:255-265.
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    File URL: http://hdl.handle.net/10.2307/1242710
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    Citations

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    Cited by:

    1. Javelosa, Josyline C. & Schmitz, Andrew, 2006. "Costs and Benefits of a WTO Dispute: Philippine Bananas and the Australian Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(1), pages 1-26.
    2. Troy G. Schmitz, 2018. "Impact of the 2014 Suspension Agreement on sugar between the United States and Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 55-69, January.
    3. Schmitz, Troy G. & Lewis, Karen E., 2015. "Impact of NAFTA on U.S. and Mexican Sugar Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), pages 1-18, September.
    4. Yves Jégourel, 2016. "Potash: a typical price war," Policy briefs 1610, Policy Center for the New South.
    5. Schmitz, Andrew, 1995. "Political Economic Analysis in Agricultural Trade and Competitiveness," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183393, International Association of Agricultural Economists.

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