publication . Article . Other literature type . 2001

Trade creation and trade diversion in the Canada - United States Free Trade Agreement

Kimberly A. Clausing;
Open Access
  • Published: 01 Aug 2001 Journal: Canadian Journal of Economics/Revue Canadienne d`Economique, volume 34, pages 677-696 (issn: 0008-4085, eissn: 1540-5982, Copyright policy)
  • Publisher: Wiley
In this paper the changes in trade patterns introduced by the Canada-United States Free Trade Agreement are examined. Variation in the extent of tariff liberalization under the agreement is used to identify the impact of tariff liberalization on the growth of trade both with member countries and non-member countries. Data at the commodity level are used, and the results indicate that the Canada-United States Free Trade Agreement had substantial trade creation effects, with little evidence of trade diversion.
Medical Subject Headings: health care economics and organizations
free text keywords: International free trade agreement, International trade, business.industry, business, Trade barrier, Commercial policy, Free trade, Economics, Gravity model of trade, Economic integration, Trade creation, International economics, Trade diversion, jel:F13, jel:F14
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