IMPACT OF THE UNITED-STATES EXPORT ENHANCEMENT PROGRAM ON EXPORTS OF CANADIAN DURUM TO THE UNITED-STATES

The Export Enhancement Program (EEP) of the United States creates a pr ice wedge between those countries that receive this subsidy and those that do not. At the same time, the EEP has made the U.S. market profit able for Canadian exports. The objective of this study is to assess th e impact of the EEP on Canadian exports of durum wheat to the U.S. For this purpose, a conceptual framework is developed and tested with a q uarterly econometric model. The empirical results support the conceptu al characterization and suggest that the EEP for durum has stimulated about half of Canadian durum exports to the United States.