AbstractA spatial equilibrium model was developed to evaluate optimal production and distribution of durum wheat for milling and export under alternative trade policies. This study found that the US and Canadian FTA will benefit US durum producers more than Canadian producers. The EEP is important in maintaining US market shares in the world market and the ERP is important for France. Canadian market shares increase when either the EEP or the ERP is eliminated. This study also found that the competitiveness of the milling industry is less sensitive to changes in trade policies than that of the durum wheat industry. © 1993 John Wiley&Sons, Inc