Welfare Analysis of the Dominican Republic-Central America-United States Free Trade Agreement: The Cotton Textile and Apparel Industries |
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| Authors: | Suwen Pan Mark Welch Samarendu Mohanty Mohamadou Fadiga Don Ethridge |
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| Institution: | 1. Department of Agricultural and Applied Economics , Texas Tech University , Lubbock, Texas, USA;2. Department of Agricultural Economics , Texas A&3. M University , College Station, Texas, USA |
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| 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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