The objective of this paper is to trace the added costs of COOL as they are passed through the hog/pork market and to determine who gains and who loses. A partial equilibrium model of Canada–U.S. trade in hogs and pork is developed. The model accounts for producer and processor behavior with respect to live hogs, and then links processed pork to the final demands of the consumer. Within the United States, processors stand to lose the most from COOL. It was found that the welfare implications of this study are clear, and hold up under alternative scenarios:
• COOL will do little to help U.S. consumers, producers, or processors.
• Canadian hog producers stand to suffer significant losses under COOL.
• Canadian consumers gain modest benefits through lower pork prices.
• Canadian pork processors stand to earn significant increases in their margins under COOL.