CANADIAN EXPORTS OF WHEAT AND BARLEY TO THE UNITED STATES AND ITS IMPACTS ON U.S. DOMESTIC PRICES

Canadian exports of wheat and barley to the United States have increased significantly since the late 1980s. The objectives of this study are to determine the factors that affect trade flows of hard red spring wheat, durum wheat, malting barley, and feed barley from Canada to the United States and to evaluate the impacts of Canadian wheat and barley exports on the U.S. domestic prices of these commodities. Major factors affecting trade flows of these commodities from Canada to the United States include the exchange rate, quality differences, differences in market size, the U.S. Export Enhancement Program, the elimination of Canadian rail subsidies, and trade liberalization under the Canada - United States Free Trade Agreement of 1989 (CUSTA). These factors have positively influenced Canadian exports, resulting in major increases in Canadian exports of agricultural commodities to the United States. The increased Canadian exports have resulted in reduced U.S. domestic prices of wheat.