Canada's Agricultural Trade in North America: Do National Borders Matter?

Canada and the United States are each other's largest trading partner. Trade in agricultural goods has grown continuously since the signing of the Canada–United States Trade Agreement in 1989. The trade agreement removed most tariffs on traded agricultural goods. However, many nontariff barriers remain. We estimate the border effects for a select group of agricultural commodities and find that the quantity traded is less than would be predicted under free trade. [ABSTRACT FROM AUTHOR]