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The Impact of the Canada-United States Free Trade Agreement on U.S. Wine Exports

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  • Dale Heien
  • Eric N. Sims

Abstract

On 1 January 1989 the Canada-United States Free Trade Agreement went into effect. The agreement reduced the restrictions on the importation and marketing of wine produced in the United States. This article analyzes the impact of this lessening on United States wine exports to Canada. A demand relation for United States exports to Canada is estimated and then used to decompose the effects into their proximate causes. These causes are (a) own-price and exchange rate effects, (b) substitute price and exchange rate effects, (c) changes in real income in Canada, (d) tariff removal effects, and (e) removal of nontariff trade barriers by Canada. Copyright 2000, Oxford University Press.

Suggested Citation

  • Dale Heien & Eric N. Sims, 2000. "The Impact of the Canada-United States Free Trade Agreement on U.S. Wine Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 173-182.
    • Handle: RePEc:oup:ajagec:v:82:y:2000:i:1:p:173-182
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00014
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    Cited by:

    1. Dyack, Brenda & Goddard, Ellen W., 2001. "The Rise of Red and the Wane of White: Wine Demand in Ontario Canada," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125617, Australian Agricultural and Resource Economics Society.
    2. Harada, Kimie & Nishitateno, Shuhei, 2021. "Measuring trade creation effects of free trade agreements: Evidence from wine trade in East Asia," Journal of Asian Economics, Elsevier, vol. 74(C).
    3. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(1), pages 31-57.
    4. Anderson, Kym, 2001. "Where In The World Is The Wine Industry Going?," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125531, Australian Agricultural and Resource Economics Society.
    5. Michael W. Klein & Scott Schuh & Robert K. Triest, 2002. "Job creation, job destruction, and international competition: job flows and trade: the case of NAFTA," Working Papers 02-8, Federal Reserve Bank of Boston.
    6. Sckokai, Paolo, 2001. "The Common Agricultural Policy In Econometric Models," Working Papers 14800, National Institute of Agricultural Economics, Italy - INEA, Osservatorio Sulle Politiche Agricole dell'UE.
    7. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.

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