Economic Development Policy for Canadian Agriculture

This study examines three alternative public policies to expand growth in Canadian agncultural production and trade: an approximately 50 percent increase in publicly-funded research and development, a 2 percent subsidy on exports for expanded market development, and a 25 percent reduct10n m the tariff equivalent of trade bamers. The study used a world food model developed at the International Institute for Applied Systems Analysis (IIASA) to evaluate the impacts of the alternatIVC policies during 1980-2000. The results showed that the largest gains from trade liberalization would be for livestock products, where protection IS currently highest Market development activities would also benefit livestock most, as demand is more responswe to market pnces. Productivity increases would be most effective in expanding grain production and exports