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Rent Seeking: The Potash Dispute between Canada and the United States
Author(s) -
Picketts Valerie J.,
Schmitz Andrew,
Schmitz Troy G.
Publication year - 1991
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242710
Subject(s) - potash , context (archaeology) , duty , business , law , political science , potassium , geography , archaeology , chemistry , organic chemistry
Despite the Canada‐United States Free Trade Agreement, border disputes involving agricultural trade are common. A theoretical basis for the 1987 U.S. countervailing duty case against Canadian exports of potash is developed using excess capacity arguments. Empirically, within a rent‐seeking context, the U.S. potash producers gained far less from their legal action against Canada than did U.S. farmers who are significant users of Canadian potash.