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

In: The International Economics of Wine

Author

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  • Kym Anderson

Abstract

In their article on the impact of the Canada-United States Free Trade Agreement (CUSFTA) on United States wine exports, Heien and Sims (1999) note that the volume of US wine exports to Canada doubled and its value more than trebled between 1988 and 1994 as CUSFTA was progressively implemented. They attribute the remarkable growth in the quantity and quality of that bilateral wine trade somewhat to the preferential removal of the import tariff on U.S. wine but mostly to the removal of some key nontariff import barriers. The latter included discriminatory listing practices (only a small subset of importable wines were listed by the monopolized liquor stores (control boards) in each Canadian province), discriminatory pricing policies (those boards marked up imported wine much more than domestic labels), discriminatory distribution practices (imported wine attracted a higher distribution service charge), and local content rules (domestic labels in British Columbia had to contain at least 80 per cent B.C. wine so as to be eligible for the discriminatory treatment favoring local wines)…

Suggested Citation

  • Kym Anderson, 2019. "On the Impact of the Canada-United States Free Trade Agreement on U.S. Wine Exports," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 16, pages 407-413, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811202094_0016
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    More about this item

    Keywords

    Wine Globalization; Australia's Wine Internationalization; Wine Markets in Asia; Wine Price Distortions; Modelling Global Wine Markets;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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