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Blackleg or blackmail? Economics of the Canada–China canola trade dispute
Canadian Journal of Agricultural Economics ( IF 9 ) Pub Date : 2019-08-23 , DOI: 10.1111/cjag.12203
Ryan Cardwell 1 , Derek G. Brewin 1
Affiliation  

The Chinese government's recent decision to suspend the export licenses of two Canadian grain firms has garnered international attention. The dispute has been portrayed by some as a diplomatic dispute between two countries, and by others as a concern about plant health. We analyze the economics of the dispute, including a simple economic model of international trade in which a large‐country importer imposes a targeted import ban on one large‐country exporter. The model provides a framework for understanding the economic effects of a trade ban under various market conditions. We also discuss the legal framework and dispute settlement process that would be encountered if the disagreement proceeds to a formal dispute in the World Trade Organization.
更新日期:2019-08-23
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