Analyzing Effects of the U.S. Duties on Canadian Hard Red Spring Wheat


Abstract

Jungho Baek
Assistant Professor, Department of Economics,
School of Management, University of Alaska Fairbanks

Jeremy W. Mattson
Associate Research Fellow, Small Urban & Rural Transit Center, Upper Great Plains Transportation Institute

Won W. Koo
Director and Professor, Center for Agricultural Policy and Trade Studies, Department of Agribusiness and Applied Economics, North Dakota State University

Since the United States imposed antidumping and countervailing duties totaling 14.16 percent on imports of Canadian hard red spring (HRS) wheat, Canadian exports to the United States have nearly stopped. This study examines the impact of the decreased HRS wheat imports from Canada on U.S. wheat prices and producer income. To measure the impacts of the U.S. duties accurately, special attention is paid to issues related to substitutability between HRS and hard red winter (HRW) wheat and third-country effects. Results suggest that the substantial decline in Canadian HRS wheat exports to the United States has increased U.S. HRS and HRW wheat prices and thus farm income.

Keywords: antidumping duties, Canadian exports, countervailing duties, farm revenue, hard red spring wheat