Factor and product market tradability and equilibrium in Pacific Rim pork industries

This study uses a new market analysis methodology to examine price and trad e relationships in eight Pacific Rim factor and product markets central to the Canadian and U.S. pork industries. The new method enables direct estima tion of the frequencies with which a variety of market conditions occur, in cluding competitive equilibrium, tradability, and segmented equilibrium. Wh ile extraordinary profit opportunities emerge episodically in a few niche m arkets, the vast majority of the markets studied are highly competitive-exh ibiting zero estimated marginal profits to spatial arbitrage at monthly fre quency-and internationally contestable. With a few notable exceptions due p rimarily to nontariff barriers, and despite significant remaining tariffs i n some niches, the Pacific Rim is effectively a single market for pork prod ucers and processors today.