WELFARE ANALYSIS OF THE DOMINICAN REPUBLICCENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT: The Cotton Textile and Apparel Industries

Date

2008

Authors

Ethridge, Don E.
Fadiga, Mohamadou
Mohanty, Samarendu
Welch, Mark
Pan, Suwen

Journal Title

Journal ISSN

Volume Title

Publisher

The International Trade Journal

Abstract

This article studies the effects of the Dominican Republic-Central America-United States Free Trade Agreement (US-CAFTA-DR) on the world fiber market using a partial equilibrium modeling approach. We find the effect of the agreement on the U.S. cotton yarn and Caribbean cotton apparel industries to be positive while the U.S. cotton apparel industry suffers significant losses. Cotton apparel producers in the Caribbean region gain approximately $80 million under US-CAFTA-DR while gains by the U.S. yarn industry average about $120 million over current trade arrangements. The U.S. cotton apparel industry loses about $40 million per year under US-CAFTA-DR.

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Citation

Pan S., M. Welch, S. Mohanty, M. Fadiga, and D. Ethridge. “Welfare Analysis of the Dominican Republic-Central America-United States Free Trade Agreement: The Cotton Textile and Apparel Industries.” The International Trade Journal, 22 (2, 2008): 188-217.