A spatial equilibrium analysis of U.S.-Canadian disputes on the world softwood lumber market

Stephen Devadoss, Angel H. Aguiar, Steven R. Shook, Jim Araji

Research output: Contribution to journalArticlepeer-review

24 Scopus citations

Abstract

This paper utilizes a world spatial equilibrium model to examine the effects of U.S.-Canadian softwood lumber disputes on U.S., Canadian, and other exporters' and importers' lumber markets. Results show that the U.S. import tariff on Canadian softwood lumber impacts prices, supply, demand and trade flows not only in the United States and Canada but also in the other countries. Though the goal of U.S. trade restriction is to limit imports from Canada and protect its producers, the United States cannot fully accomplish this goal as non-Canadian exporters fill the void left by the reduced imports from Canada. Canadian producers lose from the U.S. policy, but their loss is mitigated as Canada redirects its exports to other importers. Importing countries such as Japan and the European Union benefit from the U.S. trade restrictions as Canada seeks to sell its softwood lumber to these countries.

Original languageEnglish
Pages (from-to)177-192
Number of pages16
JournalCanadian Journal of Agricultural Economics
Volume53
Issue number2-3
DOIs
StatePublished - Jun 2005

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