Tarrifs And The Canadian Rapeseed Industry
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Rapeseed, in terms of farm value, is the second most important crop grown in Canada. The existence of tariffs on rapeseed oil, in the major import markets of the EC and Japan, have led many to believe that the elimination of these tariffs would result in substantial benefits for Canada. This paper presents empirical evidence on the impacts of removing the EC and Japenese tariffs on rapeseed and soybean oil, both seperately and jointly. In general, Canada gains from rapeseed oil tariff reductions and loses from soybean oil tariff cuts. Canada also gains if the tariff is removed on both commodities in Japan but loses if both tariffs are reduced in the EC.