How Much Market Access in FTAs? Textiles under Nafta

Details

Serval ID
serval:BIB_CFA09CBF23C2
Type
Article: article from journal or magazin.
Collection
Publications
Title
How Much Market Access in FTAs? Textiles under Nafta
Journal
World Bank Economic Review
Author(s)
Cadot, O., Carrère, C., de Melo, J., , Portugal  A.
Publication state
Published
Issued date
2006
Volume
19
Pages
379-406
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
NAFTA, rules of origin, regional integration
Create date
19/11/2007 11:48
Last modification date
20/08/2019 16:50
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