NAFTA Impacts on the U.S. Competitiveness and Trade: Beef, Pork, and Poultry
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The restricted source differentiated almost ideal demand system (RSDAIDS) is used to estimate source differentiated meat demand for U.S. NAFTA partners. In the Canadian meat market, the estimated price and expenditure elasticities indicate that Canadian beef has a competitive advantage compared to U.S. beef, while U.S. pork has a competitive advantage compared to Canadian pork. In the Mexican meat market, the estimated expenditure elasticities indicate that an increase in Mexican meat expenditures would lead to an increase in the demand for meats from all sources. Seasonality and Canadian and U.S. BSE outbreaks had small impacts on Canadian and Mexican meat demand.