Responding to Japan's deregulation of beef imports: A multifaceted challenge for Canadian export managers

Abstract

While governments may expect benefits to arise from trade liberalisation, those benefits may not be forthcoming if there are considerable increases in the costs faced by exporting firms in the period following liberalisation. The challenge for export managers is to identify the important transaction costs and to find the vertical coordination mechanism which minimises transaction costs given the new importing regime. As of April 1 1991 Japan's beef importing system completed a major phase of liberalisation. A mutually beneficial increase in Canada-Japanese trade will, however, require a complex and multifaceted response from the Canadian beef industry.