Welfare impacts of the 1996 United States – Canada Softwood Lumber ( trade ) Agreement

  title={Welfare impacts of the 1996 United States – Canada Softwood Lumber ( trade ) Agreement},
  author={Daowei Zhang},
This paper investigates welfare impacts of the 1996 United States – Canada Softwood Lumber (trade) Agree ment (SLA), which set up a tariff-regulated quota system to restrict softwood lumber export from Canada to the United States. An aggregate price model is used to estimate the price impact of the SLA, and the implied quantity and welfare effects are examined. The results show that while the anticipated change in lumber price is about $59 in 1997 U.S. dollars or 16%, on average, for the first… CONTINUE READING


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