An Evaluation of the Canada‐U.S. Wheat Agreement of 1994
评估了1994年加拿大在美国提高小麦关税威胁下自愿限制出口的协定，发现两国福利均受损，但加拿大限制出口比陷入贸易战更好。
Abstract The U.S. government notified the GATT in 1994 that it intended to increase tariff rates on wheat and barley imported from Canada. This threat of increased permanent protection resulted in Canada voluntarily agreeing to restrict wheat sales to the United States. Why would Canada agree to this outcome which would lead to a welfare loss? The payoffs to each country associated with alternative trade war outcomes are estimated. We find that welfare, as measured by equivalent variation, falls in both countries, although Canada was better off limiting exports than becoming engaged in a trade war with the United States.