Trade Distortions in a Free-trade Zone: The Case of Sanitary and Phytosanitary Restrictions

Abstract

The intent of the North American Free Trade Agreement (NAFTA) is to create a customs union, or free-trade zone, among the countries of Canada, the United States, and Mexico, in which goods and services can be freely traded. The European Union (E.U.) is even more ambitious in that it not only allows tariff-free trade but has also created a common currency. The Common Market of the South (MERCOSUR) is a free-trade zone that encompasses Brazil, Argentina, Paraguay and Uruguay and is similar in scope to the zone designated in NAFTA.

Thomas H. Spreen, John J. VanSickle and Charlene Brewster are professor, professor and postdoctoral research associate, respectively, Food and Resource Economics Department, University of Florida, Gainesville, FL. The authors gratefully acknowledge the technical assistance of Suzanne Thornsbury, University of Florida, Indian River Research and Education Centre, Fort Pierce, FL; Richard Kinney of the Florida Fresh Fruit Shippers Association; Charles Moss of the University of Florida; and the editorial assistance of H. Carole Schmitz, Jason Snart, and Kim Box.