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Abstract
Quebec, Ontario and the Northeast U.S. are expected to be important players in
Canada-U.S. dairy trade. This study explores two dairy trade scenarios between Quebec,
Ontario and the Northeast U.S. In simulation I, the U.S. is allowed to unilaterally export
yogurt and frozen desserts to Canada, and simulation II reflects a total free trade
environment. In both trade simulations, the Canadian farm milk value decreases
significantly.