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RESTRICTING WHEAT IMPORTS FROM CANADA: IMPACT OF PRODUCT DIFFERENTIATION AND U.S. EXPORT POLICY GOALS

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Abstract

Because increasing yearly U.S. imports of Canadian wheat have been a major concern of U.S. wheat interests, a policy restricting Canadian wheat imports may endure for the next few years. However, within the context of product differentiation, placing a restriction on the importation of a product that resembles one which is produced domestically may not benefit domestic producers of the product or the interests of policymakers. This analysis shows for various criteria under which EEP targets and bonus amounts have been chosen, it is unlikely that a restriction on U.S. wheat imports from Canada will have any beneficial effects.

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