Trade Diversion Under NAFTA

Fukao, Kyoji; Okubo, Toshihiro; Stern, Robert M.

doi:10.1142/9789812798091_0010

Cited by 2 publications

(4 citation statements)

References 17 publications

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“…Finally, we summarize the approach used by Fukao, Okubo, and Stern (2003, FOS hereafter). Much of the present research is motivated by and builds upon the findings in that paper.…”

Section: Introductionmentioning

confidence: 99%

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NAFTA and the Realignment of Textile and Apparel Trade: Trade Creation or Trade Diversion?*

Datta¹,

Kouliavtsev²

2009

Rev International Economics

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A modified version of the partial-equilibrium gravity model, originally proposed by Fukao et al. (2003 ), is employed to investigate the changing pattern of US textile trade. We use US Bilateral Manufacturing Imports and Exports data for 1989-2001 to assess the impact of labor wages, tariffs, and exchange rates on the composition of US textile imports before and after the creation of NAFTA. The analysis is performed at the SIC two-digit industry level and the more disaggregated four-digit sector level. We find little evidence of trade diversion in textiles frequently attributed to NAFTA, while trade creation is clearly present. Furthermore, lower wages in some textile-exporting countries (e.g. countries in Asia) do not appear to significantly increase these countries' shares of US textile imports at the expense of other trading partners. However, variations in currency exchange rates and tariffs have substantial effects on the composition of US imports. Copyright © 2009 The Authors. Journal compilation © Blackwell Publishing Ltd 2009.

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“…Finally, we summarize the approach used by Fukao, Okubo, and Stern (2003, FOS hereafter). Much of the present research is motivated by and builds upon the findings in that paper.…”

Section: Introductionmentioning

confidence: 99%

“… Abstract A modified version of the partial‐equilibrium gravity model, originally proposed by Fukao et al. (2003), is employed to investigate the changing pattern of US textile trade.…”

mentioning

confidence: 99%

NAFTA and the Realignment of Textile and Apparel Trade: Trade Creation or Trade Diversion?*

Datta¹,

Kouliavtsev²

2009

Rev International Economics

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“…In theory, restrictive ROO can contribute to trade creation because they lower trade barriers: ROO can create more trade among the agreement members by making originating inputs relatively cheaper than non-originating inputs from third parties. The academic literature supports some trade-creating effects of restrictive ROO but does so primarily where trade preferences are extended to neighbouring or geographically close countries (Conconi et al, 2018;Fukao et al, 2009).…”

Section: Usability Of Market Access Benefitsmentioning

confidence: 99%

“…Where trade-diverting effects were observed, these were usually limited to specific sectors whose inputs are available within the PTA territory, e.g. apparel in the case of NAFTA (Conconi et al, 2018;Fukao et al, 2009). So why are ROO still restrictive if members do not benefit relative to non-members through trade creation or trade diversion?…”

Section: Usability Of Market Access Benefitsmentioning

confidence: 99%

Rules of Origin in North-South Preferential Trade Agreements

Angeli

2023

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The study of trade agreements contains a knowledge gap in relation to Rules of Origin. In their simplest form, Rules of Origin are legal standards through which goods benefit from preferential market access and which prevent tariff fraud, but in practice they have mushroomed to create thousands of complex hurdles to preferential trade between developing and industrialised countries. In this study, the author fills this knowledge gap by analysing new data on the design, negotiation and impact of Rules of Origin on trade between developing and industrialised economies. Her conclusions show that a pragmatic reform of Rules of Origin in free trade agreements is both feasible and necessary.

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Trade Diversion Under NAFTA

Cited by 2 publications

References 17 publications

NAFTA and the Realignment of Textile and Apparel Trade: Trade Creation or Trade Diversion?*

NAFTA and the Realignment of Textile and Apparel Trade: Trade Creation or Trade Diversion?*

Rules of Origin in North-South Preferential Trade Agreements

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