Agribusiness Competitiveness across National Boundaries

Abstract

International competitiveness has become an extremely important topic in Canada. It is high on the political agenda because it is high on the economic agenda. It is particularly important for Canada's agri-food industry. The Canadian food sector evolved during the past half century behind a roughly 20% protective tariff wall, which is being removed by the Canada-U.S. Trade Agreement (CUSTA). The sector must adjust. While competitiveness is a major issue and topic of discussion, it has not been well defined or measured. Moreover, untangling the web of causality between elements of public policy, private management strategy, and the food industry's competitive state is fundamental. Thus, in this paper we develop a framework for assessing the competitive state of an industry. The objectives are to (a) develop a framework for assessing an industry's competitiveness, (b) report on the competitive state of five food-processing industries, and (c) assess the public policy implications that arise from application of the framework for these five industries.