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Impact of textile raw material access on CAFTA-DR members’ apparel exports to the United States: a quantitative evaluation

2023; Taylor & Francis; Volume: 115; Issue: 4 Linguagem: Inglês

10.1080/00405000.2023.2191235

1754-2340

Sheng Lu,

Global Trade and Competitiveness

This study quantitatively evaluated the impact of textile raw material access on Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) members' apparel exports to the United States. Results from the computable general equilibrium (CGE) model show that improving CAFTA-DR garment producers' textile raw material access would significantly enhance the price competitiveness of their apparel exports to the United States and increase the export volume. However, improving CAFTA-DR garment producers' textile raw material access would primarily benefit Asian textile suppliers but result in CAFTA-DR members' reduced dependence on the U.S. textile raw material supply. The study's findings provided new insights into the textile and apparel trade patterns in the Western Hemisphere and offered valuable inputs contributing to the public policy debate on expanding U.S. apparel sourcing from CAFTA-DR members from a unique supply chain perspective.