Market Access and Welfare underFree Trade Agreements : Textiles under NAFTA

[摘要] The effective market access granted totextiles and apparel under the North American Free TradeAgreement (NAFTA) is estimated, taking into account thepresence of rules of origin. First, estimates are providedof the effect of tariff preferences combined with rules oforigin on the border prices of Mexican final goods exportedto the United States (U.S.) and of U.S. intermediate goodsexported to Mexico, based on eight-digit harmonized systemtariff-line data. A third of the estimated rise in theborder price of Mexican apparel products is found tocompensate for the cost of complying with NAFTA's rulesof origin, and NAFTA is found to have raised the price ofU.S. intermediate goods exported to Mexico by around 12percent, with downstream rules of origin accounting for athird of that increase. Second, simulations are used toestimate welfare gains for Mexican exporters frompreferential market access under NAFTA. The presence ofrules of origin is found to approximately halve these gains.

[发布日期] 2005-12-29 [发布机构] Published by Oxford University Press on behalf of the World Bank

[学科分类] 社会科学、人文和艺术（综合）

[关键词] ACCOUNTING;APPAREL;APPAREL EXPORTS;APPAREL GOODS;APPAREL INDUSTRY