NAFTA as a Means of Raising Rivals' Costs: A Comment |
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Authors: | Sawyer W Charles |
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Institution: | (1) Department of Economics and International Business, University of Southern Mississippi, Hattiesburg, MS, 39406-5072, U.S.A |
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Abstract: | The purpose of this comment is toclarify and extend a recent paper entitled NAFTA as a Means of Raising Rivals Costs. The paper indicates that the complexity of complying with the rules of NAFTA may lead to a decrease in competition in the domestic market. The comment shows that thecomplexity of NAFTA is related to the rules of origin which are a part of virtually any free-tradeagreement. Since rules of origin are a necessary part of virtually any trade agreement, the conclusions of the paper are not restricted to NAFTA but can be generalized to a large part of international trade. |
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Keywords: | NAFTA rules of origin |
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