Abstract
The Canada-United States Free Trade Agreement (CUSFTA) has liberalized trade and more fully integrated the economies of the two countries. This article analyzes the impacts of the CUSFTA on the beef packing industry in Canada. As a result of liberalized trade, the Canadian beef packing industry has been confronted with intense competition for cattle supplies and product markets. Because Canadian firms cannot achieve full scale economies and they face higher factor input prices, a significant consequence of the CUSFTA has been plant closures and the effective elimination of the beef packing indistry in three of the four western Canadian provinces.
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