Assistant Professor Mahbobi from Thompson Rivers University and Associate Professor Tran from the University of Lethbridge examined the short run impact of anti-dumping duties by the US on live cattle trade between Canada and US. Using data and sophisticated time series analysis they were able to affirm that Canadian live cattle exports play an important role in the US beef market. Market driven shocks on price, and exchange rates arising from anti-dumping duties can have a huge short run impact on the trade flow between the two countries. In particular, a US imposed anti-dumping duty against Canadian live cattle exports can increase significantly the market share of the US cattle producers even in the short run. Anti-dumping duties can thus act as a very strong protectionism measure.
Antidumping duties against Canadian live cattle exports could be costly
September 7, 2012
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