Canada's agricultural trade in North America: do national borders matter?

Canada and the United States are each other's largest trading partner. Trade in agricultural goods has grown continuously since the signing of the Canada-United States Trade Agreement in 1989. The trade agreement removed most tariffs on traded agricultural goods. However, many nontariff barriers remain. We estimate the border effects for a select group of agricultural commodities and find that the quantity traded is less than would be predicted under free trade.