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Abstract

Intra-industry trade is the simultaneous importing and exporting of goods from the same industry classification. It is a phenomenon that is often identified with product differentiation and aspects of imperfect competition. Existing theoretical and empirical analysis often suggests that the level of intra-industry trade may have implications for trade liberalization. This report presents intra-industry trade indexes for Canada, Mexico, and the United States, three countries currently involved in negotiations to form a North American Free Trade Area.

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