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This study aims to empirically investigate the potential impact of the Trans-Pacific Partnership (TPP) on US textile and apparel manufacturing.

This study adopts the Global Trade Analysis Project (GTAP) computable general equilibrium model based on the latest GTAP9 database.

The findings of the study suggest that: the “yarn-forward” rule will not work effectively in the context of TPP; and the development of Vietnam’s local textile industry is a critical threat to the survival of US textile and apparel (T&A) manufacturing in the long run.

The findings of the study augment the understanding of the T&A-specific sectoral impact of TPP and address the particular concerns of the US T&A manufacturers with regard to the new business environment and the possible scenarios after the implementation of the agreement.

The U.S. textile industry has gone through much upheaval in the past two decades. As protective barriers are gradually phased out the industry is faced with stiff foreign competition. Regional trade pacts, such as NAFTA and CBI, on the other hand help to improve the competitiveness of the domestic textile industry. This paper looks at the trends in U.S. textile trade with the various trading zones and the various factors influencing textile imports and exports. We examine the impact of the new global environment, the regional trade pacts, NAFTA and CBI on the changing nature and pattern of trade. The overall trends indicate a significant decline in imports from the EU countries, Asia remains significant, but NAFTA and CBI countries are quickly gaining ground over the old trading partners. The OECD remains the most significant destination for U.S. textile exports followed by NAFTA and Latin American countries.

The purpose of this paper is to analyze the different kinds of rules of origin included in the US‐Arab countries free trade agreements (FTAs), and suggest reform measures that should be adopted to ease the complexity and costs of rules of origin in these agreements.

The paper begins with a brief discussion of the concept of free trade, GATT/WTO, and the recently concluded FTAs between the USA and Arab countries. Then, the article analyzes in details rules of origin in the US‐Arab countries FTAs. The analysis includes, among other things, substantial transformation and value‐added tests, product‐specific processes, and other relevant rules of origin. The paper also addresses the documentations and procedures required to prove origin and the costs involved. Finally, the paper offers a set of conclusions and recommendations.

The paper argues that rules of origin in these FTAs are complex and protectionist and indeed could act barriers to trade. The paper suggests reforming these rules by liberalizing rules of origin for certain products that are subject to very low tariff rates, and implementation of – among other things, full cumulation and de minimis rules of origin.

The findings in the paper are important to policymakers, and any person interested in understanding the effects of rules of origin in trade agreements. It is hoped that the paper will assist officials in Arab countries who contemplate negotiating FTAs by providing them with insightful analysis of rules of origin in existing agreements.

This paper examines and divulges the impacts of North American Free Trade Agreement (NAFTA) on textile and clothing (T&C) exports from selected South and Southeast (S&SE) Asian developing countries and the NAFTA members to the USA.

A gravity model of sectoral‐level analysis was employed to analyze the effects of the NAFTA on T&C trade among member and non‐member countries. Regional indicator variables were used to identify the change in the T&C trade effect arising from the free trade area (FTA).

The increase in T&C intra trade within the NAFTA could be shown by the increasing trend of the regional indicator variables in three consecutive time intervals from 1990 to 2001 in the regression model. However, the indicator variables of both the T&C trade models decline substantially to negative value in the period 2002‐2005. This is consistent with the current situation that the total export trade among the NAFTA partners has trended downwards in subsequent years. The descending trend of the intra‐NAFTA T&C trade could be attributed to the increasing competition from S&SE Asian countries with the gradual phasing out of quotas under the Agreement of Textiles and Clothing and the further elimination of quotas after 2005.

The value of this research in assessing the correlation between NAFTA on the T&C trade can show S&SE Asian developing countries the importance of them within their emerging economy. This study shows the specific impact of the FTA and offers a vital insight on global T&C trade.

Two-way trade flows between Africa and China have increased rapidly between 2001 and 2010. Mauritius being a resource-scarce economy has been no stranger to the “China phenomenon”. China is the third largest supplier to the Mauritian market but will soon be competing for first place. Exports to China, on the other hand, have remained marginal. The paper aims to examine the potential impacts of China's spectacular rise on the Mauritian economy through the trade channel.

The paper draws extensively on secondary data to explain the low export penetration of Mauritian goods on Chinese markets and to examine the impact of Chinese dominance of the global apparel market on Mauritius' clothing exports to third markets. The paper first considers several potential explanations for Mauritius' low levels of exports to China, which are: Mauritius' exports are not competitive enough to penetrate the Chinese market; China does not need to import from Mauritius since it produces all that Mauritius exports; and the Chinese market is relatively closed to Mauritian exports due to high tariffs and other non-tariff barriers. The paper investigates each of the above hypotheses using secondary data from UN COMTRADE. The paper computes a set of revealed comparative advantage (RCA) indices for Mauritius and China and shows how they have evolved over time. Given the inherent shortcoming of the RCA measure, the paper provides a complementary assessment based on an analysis of cost competitiveness factors. The Export Similarity Index and the Trade Complementarity Index are also computed to test the above hypotheses. Second, using disaggregated data on clothing exports from UN COMTRADE, the paper analyses the product categories where Chinese competition has been most acute.

In conclusion, the whole body of evidence presented in this study points to bleak prospects for Mauritian exporters to enter the Chinese market in a significant manner. Worse, because most of the causes of this low export penetration are due to systemic factors – such as a lack of trade complementarity, poor export competitiveness, export market bias and an irrational fear of doing business in China – the current situation is unlikely to improve in the future in the absence of bold policy measures.

This is the first study looking at the trade relationship between Mauritius and China.

The paper seeks to develop strategic planning to enhance sustainable competitiveness in the US textile industry with a consideration of DR‐CAFTA as an opportunity to establish responsive supply chain networks in the Western hemisphere.

The analysis was based on literature reviews, trade data analyses, and site visits for personal interviews at textile and apparel companies in North Carolina and the Office of Textile and Apparel at the US Department of Commerce, Washington, DC.

DR‐CAFTA countries constitute the only remaining region that the US textile industry can use to achieve speed‐to‐market advantages from geographical proximity. Market analysis indicated both voids and opportunities in “fast retailing” supply chain networks. In developing time‐to‐market supply chain networks, it is suggested that the implementation of DR‐CAFTA should focus on: streamlining the rules of origin, expanding the short‐supply list, and coordinating custom procedures; financing options for DR‐CAFTA countries' procurement of fabrics and other raw materials from the USA.

Two models are proposed which can possibly be implemented by the US textile industry: a shortened supply chain for knitted sportswear and fashionable shirts that can capitalize on time‐to‐market; and triangular supply‐chain networks among US retailers and textile companies, Asian textile manufacturers, and DR‐CAFTA apparel manufacturers for fashion basics.

This study has an implication for the US textile industry and policy makers to develop future strategic planning in the post‐quota era. The suggestions will contribute to enhancing the competitiveness of the US textile industry in the intense global competition by achieving speed‐to‐market with DR‐CAFTA countries.

As the North American Free Trade Agreement (NAFTA) is put into effect, Asian countries have shown growing concerns about the protectionist nature of the NAFTA. Key provisions of NAFTA which have potential negative impacts on Asian economies are examined. The economic analysis suggests that there will not be much, if any, trade or investment diversion effect of NAFTA upon Asian countries. The initial reaction to NAFTA from these countries supports this prediction.

Since the First Yaoundé Convention (1963‐1969), the European Union (EU) has been implementing its development policy in the African, Caribbean, and Pacific (ACP) countries. The purpose of this paper is to focus on the trade and financial flows between the EU and the ACP countries and attempt to empirically evaluate the effectiveness of the EU's development policy during the pre‐Cotonou era (1970‐2000).

Extensive trade, governance, and external financing data are gathered about 79 ACP countries during the period 1970‐2004. Using the index of standardized trade performance, diversification indices, and regression analysis, the effectiveness of trade preferences and financial assistance in the ACP countries is quantified.

The results indicate that the preferential trade arrangements between the EU and the ACP countries had neither substantially increased the ACP countries' exports to the EU nor diversified these countries' export structure. Additionally, even though the ACP countries received substantial external financing, these countries continued suffering from the lack of development‐enhancing political and judicial institutions. The empirical results suggest that governance characteristics such as higher corruption and lower democratic accountability have adversely affected the ACP countries' growth rates.

This paper focuses on the effectiveness of the economic cooperation between the EU and the ACP countries during the pre‐Cotonou era. The Cotonou agreement that went into effect in 2000 has changed the EU's approach to the ACP countries significantly. However, the recent nature of this agreement imposes restrictions on data availability, which forces us to exclude the Cotonou era from most of our empirical evaluation.

The empirical results of the paper demonstrate the relevance of governance‐related factors or institutions in developing countries. Neither preferential trade nor financial assistance seems to enhance the growth performance of these countries if they lack political transparency and accountability.

This paper provides empirical evidence that the change in the EU's approach to its economic partnership with the ACP countries is warranted. Because the empirical results suggest that the pre‐Cotonou economic cooperation between the EU and the ACP countries did not contribute to the ACP countries' economic growth, the EU's decision of shifting the focus from trade preferences to governance‐related issues in the ACP countries can be viewed as justified.

The textile and apparel industries in North America have experienced dramatic changes in the past decade. The North American Free Trade Agreement (NAFTA) has prompted the formation of apparel supply networks throughout the Western Hemisphere combining textile industries and retailers in the USA with apparel industries in Mexico to compete against Asian countries. Contrary to the widely acclaimed intent of NAFTA, the increased apparel production in Mexico has not led to a growth for the US textile industry. Instead, the US textile industry has continuously lost ground in global competition, giving up a large portion of its manufacturing. Today, the US textile industry is undergoing negative profits, countless plant closings, layoffs, and eventual bankruptcies. This study analyzes the impact of NAFTA and US textile companies’ corporate strategies on the performance of the textile industry and examines the pending strategic issues for maintaining US textile companies’ competitiveness in global markets.