The US—Canadian free trade agreement and North American maritime trade

The free trade agreement (FTA) implemented in 1988 by the United States and Canada will complete the integration of the economics of the world's two largest trading partners. While the vast bulk of US-Canadian trade is transported overland, the FTA will also affect the volume, commodity composition, and spatial distribution of maritime trade. The spatial structure of US-Canadian water-borne trade is examined followed by an investigation of the short-run (non-investment related) impacts of the FTA on the US port system. Commodity-specific analyses of tariffs and non-tariff barriers and elasticities of demand are employed to estimate the sectoral and spatial changes in water-borne trade volumes since 1988 that are attributable to the FTA.