Market access asymmetry in food trade

Using a bilateral trade equation derived from a monopolistic competition model, we investigated market access reciprocity in food trade among the United States, Canada, the European Union and Japan. We explore country and industry–specific market access asymmetry through the border effect approach, re-challenging the underlying main explanations. Our findings reveal marked asymmetry in reciprocal border effect, both across countries and industries. Trade policy measures, particularly non-tariff barriers (NTBs), the degree of product differentiation and a ‘home bias’ in preferences, are important factors in explaining levels in border effects. Asymmetry in border effects are mainly explained by trade policies.