A General Equilibrium Evaluation of Trade Liberalization in Canadian Agriculture

Date

1996

Author

Güzel, Alper
Furtan, Hartley

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In this paper a general equilibrium model of the Canadian economy which has a high level of disaggregation in agricultural sector is developed in order to measure the impact of trade liberalization on agricultural trade. In the model a special attention has been given to the effects of sector specific agricultural policies especially in the grains and the supply managed sectors. Agricultural liberalization experiments included both unilateral and multilateral removal of agricultural policies. The results of the experiments suggested that for the Canadian economy, efficiency gains from liberalization are quite substantial. However, it is also found that Canadian grain and dairy farmers are dependent upon subsidies in order to compete in the export markets and a unilateral removal of domestic farm policies may significantly reduce farm incomes in Canada. On the contrary, it is found that Canadian agriculture would fare well under the recent GATT agreement.

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https://hdl.handle.net/11511/109512

Collections

Department of Economics, Article