from 1984 to 1988 (pre-CUSTA) which increased to 66% from 1989 to 1993 (post-CUSTA). Similarly, the growth rate of US livestock and meat exports to Canada was 22% from 1984 to 1988 which increased to 105% from 1989 to 1993 (USDA/FAS, 2012). Comparably, the rate of growth of US exports to the Rest of the World (ROW), excluding Mexico, decreased from 45% between 1984 and 1988 to 0% from 1989 to 1993. US imports from ROW decreased from 33% from 1984 to 1988 to -6% from 1989 to 1993. Whereas trade between Canada and US increased drastically postCUSTA, trade between the ROW Bigstock and US decreased considerably (USDA/FAS, 2012). This outlines the benefits of integration which materialize by facilitating a greater degree of specialization as well as the advantages of economies of scale and scope. Trade continued to flourish until 2001 with the tightening of the Canada-US border due to the 9/11 terrorist attack. This caused northern US cow calf producers to gain a competitive advantage over imported products (Hart, 2007). After realizing higher returns, they began lobbying for protectionist legislation in an effort to permanently limit
Spring 2012
Canadian student review
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