What Will Happen to the US Textile and Apparel Industry if the NAFTA Goes?

2018 ◽  
Vol 12 (2) ◽  
pp. 113-137
Author(s):  
Sheng Lu
Keyword(s):  
Free Trade ◽  
Computable General Equilibrium ◽  
Textile Industry ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
Computable General Equilibrium Model ◽  
Export Market ◽  
The Us ◽  
Textile And Apparel

This study provides a quantitative evaluation of how the termination of the North American Free Trade Agreement (NAFTA) proposed by the Trump administration will affect the US textile and apparel (T&A) industry. By adopting the Global Trade Analysis Project (GTAP) computable general equilibrium model based on the GTAP9 database, the study finds that: first, the termination of NAFTA will significantly reduce US apparel imports from NAFTA members but lead to an increase of US apparel imports from Asian countries; second, ending NAFTA will substantially reduce US textile exports to the NAFTA region, which currently is the single largest export market for the US textile industry; and third, rather than encouraging more ‘Made in the USA’, the termination of NAFTA will reduce further the output of T&A manufacturing in the United States. The findings of this study augment our understanding of the potential economic impact of ending a major free trade agreement, which has been studied little, and shed new lights on the debate regarding the T&A-specific sectoral impact of NAFTA. The findings of the study also provide valuable inputs for policymakers regarding what should or should not be done with NAFTA from the perspective of the US T&A industry. JEL Classification: F14, F15, F17

Free Trade as a Strategic Instrument in the War on Terror?: The 2004 US-Moroccan Free Trade Agreement

2005 ◽  
Vol 59 (4) ◽  
pp. 597-616 ◽  
Author(s):  
Gregory W. White
Keyword(s):  
United States ◽  
Free Trade ◽  
War On Terror ◽  
Security Policy ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
Social Cleavages ◽  
The Us ◽  
The Government

In June 2004, the United States signed a Free Trade Agreement (FTA) with Morocco. FTAs are typically thought of as economic agreements, but the agreement with Morocco has an explicit security component. Indeed, US officials have cast the agreement as an opportunity to support a close ally in the region, and its signing coincides with Morocco's denomination as a non-NATO ally of the US. Yet even if the FTA achieves its stated economic goals — a very tall and ambitious order — it remains to be seen whether or not the benefits will extend to a society divided by enormous social cleavages. As a result, the US-Moroccan FTA and Morocco's new found stature in US security policy paradoxically run the risk of deepening societal resentment within Morocco toward the government and, by extension, the US.

NAFTA at 20

2015 ◽  
pp. 41-52
Author(s):  
E. Komkova
Keyword(s):  
Free Trade ◽  
North American ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
Economic Transformation ◽  
Export Market ◽  
The North ◽  
The Usa ◽  
Trade And Investment

2014 marked the 20th anniversary of the entry into force of the North American Free Trade Agreement (NAFTA), which created the world’s largest free trade area. Now it links 470 million people producing more than 19 trillion USD worth of goods and services. The article addresses five issues: the international importance of NAFTA; the economic transformation that has occurred in the USA, Canada and Mexico since the advent of the NAFTA; a “thought experiment” on what American, Canadian and Mexican performance might have been without the NAFTA; the detrimental effect of 9/11 on the North American economic integration; and what’s next? At the time of its signing, NAFTA in many ways was considered a “gold standard” in terms of international free trade agreements. For the first time ever a free trade agreement brought together both developed and developing countries. It also broadened the scope of traditional FTAs by embracing services, foreign investments and property rights, and recognized the importance of workers' and environmental rights and issues. In terms of trade and investment NAFTA has been an undisputed success. Canada ranks as the United States’ largest export market, while Mexico is its second-largest export market. Today – thanks to NAFTA – North Americans not only sell more goods to one another, they also make more things together. For every dollar of goods that Canada and Mexico export to the USA, there are 25 cents’ worth of US inputs into Canadian goods and 40 cents’ worth into Mexican ones. Regardless of the impressive economic record, NAFTA has its critics. The agreement has not underwent a major update since its inception in 1994, i.e. prior to the rise of electronic commerce and, digital services, advanced manufacturing and many other innovative features of the global economy. As far as there is no political appetite to update NAFTA directly, indirect route is a subject of wide speculation. Canada, the USA and Mexico are negotiating partners to the Trans-Pacific Partnership and any benefits conferred by the TPP that go further than NAFTA would take precedence. It is assumed that the TPP should help to modernize NAFTA commitments and upgrade the North American trade and investment.

scholarly journals The China-Australia Free Trade Agreement (ChAFTA): its implications for Australia-United States relations

2019 ◽  
Vol 15 (1) ◽  
pp. 41-53
Author(s):  
Johni Robert Verianto Korwa
Keyword(s):  
United States ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Strategic Alliance ◽  
International System ◽  
Trade Agreement ◽  
The United States ◽  
National Interests ◽  
Trade Relations ◽  
The Us

Australia is currently faced with a strategic and economic dilemma regarding its interactions with China and the United States (US). On the one hand, it should maintain and strengthen its strategic relations with the US as an ally in order to contain a rising China. On the other hand, Australia should ensure its economic growth by strengthening trade relations with China. This paper aims to examine the implications of the new China-Australia Free Trade Agreement (ChAFTA) for the ANZUS strategic alliance. Through Qualitative Approach, this article analyzes the issues with the use of realist and liberal perspectives in international relations. By assessing two previous events involving the triangular Australia-US-China relationship (the case of the Taiwan conflict, and the US development of a National Missile Defense system), this paper concludes that ChAFTA may tend to undermine the ANZUS alliance. Three reasons for this conclusion are identified: a fundamental shift in the way Australia perceives China; ChAFTA offers more benefits to Australia than the Australia-US Free Trade Agreement (AUSFTA); and finally Australia may consider ChAFTA as being more in its national interests in the international system than the ANZUS alliance.

scholarly journals THE IMPACT OF FREE TRADE BETWEEN ASEAN AND CHINA ON THE INDONESIAN HOUSEHOLDS

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Indra Maipita
Keyword(s):  
Free Trade ◽  
Computable General Equilibrium ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Computable General Equilibrium Model ◽  
Skilled Workers ◽  
Urban Households ◽  
Macroeconomic Indicators ◽  
The Impact ◽  
Research Show

Free trade agreement between ASEAN and China was executed in early 2010. Various types of trade tariffs have been removed or lowered to support the agreement which may lead to changes in the welfare of Indonesian households. This research tries to find out the impact of ASEAN-China free trade agreement on the welfare of households in Indonesia. The model used for this analysis is AGEFIS model, a Computable General Equilibrium model of Indonesian economy. The findings of this research show that the free trade between ASEAN and China increases the level of economic activity. Various macroeconomic indicators such as output and exports increase relative to the output prior to the  free trade agreement. Income of urban households rise but rural households are adversely affected. Skilled-workers benefits more than unskilled ones.

scholarly journals Potential effects of the T-TIP on Turkey's motor vehicles and parts sector

2019 ◽  
Vol 66 (4) ◽  
pp. 507-523
Author(s):  
Abdullah Akel ◽  
Aylin Ege
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Market Access ◽  
Trade Agreement ◽  
The United States ◽  
Motor Vehicles ◽  
Partial Equilibrium Model ◽  
The Us ◽  
Levels Of Integration ◽  
The Eu

The aim of this article is to quantify the possible effects of a potential T-TIP between the US and the EU on production and exports of Turkey?s motor vehicles and parts sector. A partial equilibrium model is used to this end under two scenarios, the first one assuming only T-TIP, whereas the second one supposing a simultaneous free trade agreement between the US and Turkey. The simulations are based on the reductions in tariffs and non-tariff barriers between the T-TIP partners in the first scenario, and between the US and Turkey, as well in the second scenario. The simulation results indicate that the prospective effects on the sector?s production and exports differ significantly depending on different levels of integration. The results also reflect decreasing net welfare for Turkey and that a free trade agreement with the United States does not offer a significant market access potential for Turkey because of its production structure.

US-Mexico Free Trade: Implications for the United States

1992 ◽  
Vol 34 (2) ◽  
pp. 29-52 ◽  
Author(s):  
Sidney Weintraub
Keyword(s):  
United States ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
Us Congress ◽  
The North ◽  
The Us ◽  
The Moment ◽  
Changing Attitudes

The Moment of Truth has come for the North American Free Trade Agreement (NAFTA). The US Congress will have to stop talking and vote to accept or reject the agreement negotiated among Canada, Mexico, and the United States. The disagreement on NAFTA in the United States is about free trade with Mexico, not with Canada. A US-Canada free trade agreement (FTA) already exists.This controversy over NAFTA has been fierce in the United States, much more so than in Mexico. This comparison speaks volumes about changing attitudes. It was almost unthinkable a decade ago that Mexico would so drastically alter its traditional position of maintaining economic and political distance from the United States. This change would not have been possible but for la decena trágica, the years of the 1980s. Beyond that, Mexico has more at stake in a free trade agreement. It has the smaller economy (about 1/27th that of the United States) so that changes, for better or worse, are magnified.

Gary Gereffi, David Spener, and Jennifer Bair,Free Trade and Uneven Development: The North American Apparel Industry After Nafta. Philadelphia: Temple University Press, 2002. 426 pp. $27.95 paper.

2005 ◽  
Vol 68 ◽  
pp. 146-149
Author(s):  
Will Millberg
Keyword(s):  
Free Trade ◽  
North American ◽  
Trade Agreement ◽  
The United States ◽  
Temple University ◽  
The North ◽  
The Us ◽  
Textile And Apparel ◽  
Apparel Production ◽  
Different Levels

As textile and apparel production has been at the center of almost every major episode of industrialization since the sixteenth century, so too has it been a vanguard sector in the process of deindustrialization experienced by advanced capitalist countries beginning in the twentieth century. Thus it is no surprise that this sector would play a fascinating role in the world's first postcolonial effort at economic integration between two countries at vastly different levels of economic development. The North American Free Trade Agreement (NAFTA), implemented in 1994, was expected to speed the two already ongoing trends of a rising apparel sector in Mexico and a steadily declining sector in the United States. US apparel firms would be expected to be an important contributor to Ross Perot's infamous “sucking sound” of jobs moving from the US to Mexico.

scholarly journals Striking a Trade Deal With President Trump? an Assessment of The Potential of Bilateral Free Trade Agreement (FTA) between the Republic of Indonesia and the United States of America

2018 ◽  
Vol 7 (3.21) ◽  
pp. 125
Author(s):  
Ranti Yulia Wardani ◽  
Patrick Ziltener ◽  
. .
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Research Study ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
The United States ◽  
The Us ◽  
Research Findings ◽  
The Republic ◽  
Level Of Analysis

The US President Donald Trump announced that US would have some bilateral trade consent, as averse to multilateral trade deal such as the Trans-Pacific Partnership (TPP). This research study investigates empirically the economic potential of bilateral Free Trade Agreement (FTA) between Indonesia and the US. The goal is to calculate the maximum savings potential for exporters. The savings potential is defined as duties that have been paid by any WTO exporter countries to another country based on the combination of its exports and the duties that  not reduce at FTA based. The “maximum savings” is the  from the presumption of all export products from the country origin will have zero tariff to enter another country who have an FTA. By using this measurement, country could have ex ante scenarios close to the real calculation tariff without FTA. The data is collected from the UNCOMTRADE and applied tariff rate (ATR) from the WTO. In this research, the level of analysis is the Harmonized System Code (HS Code) 6 digit level. The research findings show that duties of foodstuffs (HS Code 16-24) Indonesian import from the US is the biggest duties compare to other import item products. On the other side the biggest duties export from Indonesia to the U.S is mainly textile (HS Code 50-63). Therefore, the potential  saving from striking a trade deal would be considerable for both side countries. This research study gives more insight about the savings potential for mutual trade bilateral agreement for both countries. Once both countries agree on trade deal, it would encourage more export, raise the competitiveness level for some companies then lead to the economic growth.  

Sign in / Sign up

Export Citation Format

Share Document