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How Much Market Access in FTAs? Textiles Under NAFTA

Cadot, Olivier
Portugal-Pérez, Luis Alberto
Publication London: International Trade and Regional Economics - Centre for Economic Policy Research, 2005
Collection Centre for Economic Policy Research (CEPR) - Discussion Paper; DP5051
Description 41 p.
Abstract This paper estimates the effective market-access granted under NAFTA in textiles and apparel by combining two approaches. First, we estimate the effect of tariff preferences and rules of origin on the border prices of Mexican final goods exported to the US and of US intermediates exported to Mexico. We find that one third of the estimated rise in the border price of Mexican apparel products compensates for the cost of complying with NAFTA's rules of origin. We also find that the price of US intermediates exported to Mexico is raised significantly by the presence of rules of origin downstream. Second, simulations from a structural model inspired by our econometric estimates, suggest little market-access improvement for Mexican exporters.
Keywords NAFTARegional integrationRules of origin
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CARRERE, Céline et al. How Much Market Access in FTAs? Textiles Under NAFTA. 2005 https://archive-ouverte.unige.ch/unige:46921

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Deposited on : 2015-02-19

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