North American Free Trade Agreement (NAFTA) and Agri-Food Industry in Canada : Focusing Fruits and Wine Industry

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The purpose of this study is to examine the structural change of agri-food industry in Canada under NAFTA, especially focusing on fruits and wine industry. Fruits and wine industry is the less comparative advantage sector in Canada's agri-food industry. This study explores the impacts of CUSTA(Canada-US Free Trade Agreement) and NAFTA on fruits and wine industry, and discuss policies and programs to changing market under FTA.The results of the study are as follows. First, area of fruit trees like apple and pear has continueosly decreased since late 1980s. However, it is noteworthy that area of berries and grapes has increased. Area and production of blueberry has increased remarkably. Then Canada became one of the largest exporting countries of blueberry.Secondly, wine import has increased due to expansion of domestic demand. As a result, self-sufficiency rate of wine has declined through 1990s. Wine production has shrunk in early 1990s, but revived in late 1990s. The reasons of increasing production are as follows ;(1) replacement of variety to Vinifera, (2) introduction of Vintners Quality Assurance (VQA), (3) development of specialty products like Ice Wine, (4) cooperative marketing with tourism. Especially, VQA has played important role for marketing promotion of high quality wine.