1. NAFTA Trade with East Asia
- Author
-
James, William E. and Umemoto, Masaru
- Subjects
East Asia -- International trade ,Clothing industry -- International trade -- Economic aspects ,Footwear industry -- International trade -- Economic aspects ,Rules of origin (International trade) -- Economic aspects ,Machinery industry -- International aspects -- Economic aspects -- International trade ,Textile industry -- International trade -- Economic aspects ,Free Trade Agreement, 1992, United States-Canada-Mexico ,Business ,Economics ,Business, international ,International trade ,Economic aspects ,International aspects - Abstract
Rules of origin govern preferential trade in the North American Free Trade Agreement (NAFTA). A model of trade in intermediate goods is used to examine the effect of rules of origin on trade between member and non-member countries. High MFN tariffs and quota restrictions on textiles and apparel face East Asian producers, including those in ASEAN, in NAFTA markets but are relaxed for producers within the FTA, including Mexico. Trade diversion on a large scale is thus predicted in textiles and apparel. Evidence of such trade diversion is provided. Within NAFTA, Mexico gains market share in textiles and apparel at the expense of ASEAN and Northeast Asia. However, in Japan ASEAN gains market share., Rules of Origin and Market Access in Textiles, Apparel, Footwear and Electrical Machinery I. Introduction Rules of origin are among the most controversial aspects of the North American Free Trade [...]
- Published
- 2000