This paper considers the role of congestion of a nontradable information network service in the determination of trade patterns. We extend the trade model with nontradable network services given by Kikuchi (2000) to include the congestion effect. In contrast to Kikuchi's analysis which deals with a symmetric equilibrium with each country having unequal network expenses and no intra-industry trade, this paper shows that there exists a possibility of equal network expenses and intra-industry trade equilibrium depending on the parameters of the network cost function and factor endowments in the free trade equilibrium.
