IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Textile and Apparel Barriers and Rules of Origin: What’s Left to Gain after the Agreement on Textiles and Clothing?

Listed author(s):
  • K. Fox, Alan


    (U.S. International Trade Commission)

  • Powers, William


    (U.S. International Trade Commission)

Registered author(s):

    Although textile and apparel imports from most countries entered the United States quota-free after the expiration of the Agreement on Textiles and Clothing on January 1, 2005, substantial restraints remain on U.S. trade in these sectors, including high tariffs, quantitative restraints on China and Vietnam, and preferential rules of origin. While there is a substantial literature on liberalization of quotas and tariffs in these sectors, this paper provides a new and detailed examination of the effects of rule-based foreign demand for U.S. textile and apparel inputs. This paper uses the USAGE–ITC general equilibrium model to estimate the effects of removing textile and apparel restraints in 2005. Full liberalization is estimated to increase U.S. welfare by $2.0 billion (net) while decreasing U.S. textile and apparel output by 9.0 percent. Quantitative restraints continue to have considerable effects on U.S. welfare: their elimination provides over half of the welfare gain. However, rules of origin have by far the largest effect on production and employment. Elimination of preferential rules of origin accounts for 82 percent of the overall output reduction, because these rules currently generate nearly half of the foreign demand for U.S. textile and apparel exports. A similarly large output loss would also be part of any tariff liberalization that encouraged preferential trade partners to reduce purchases of U.S. inputs as their preference margins eroded. This is the first study in the literature to quantify this effect, which is sufficient to eliminate four-fifths of the welfare gains from tariff liberalization in these sectors.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

    Volume (Year): 23 (2008)
    Issue (Month): ()
    Pages: 656-684

    in new window

    Handle: RePEc:ris:integr:0449
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ris:integr:0449. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.