ABSTRACT

Between 1994–1999, the early years of the Clinton administration's experience with NAFTA, 163 petitions covering 17,461 employees were certified for the footwear industry. Up to 1974 when 118 petitions affecting 30,000 workers in the footwear industry were filed, only 43 were certified. The model will examine the extent to which the Trade Adjustment assistance would be favorable to the employment situation of displaced workers. The 1984 study did not single out the footwear industry for analysis, but provided estimates for only the leather wearing apparel industry. The International Trade commission released a May 1999 study with some estimates of NAFTA on the footwear industry. It used a general equilibrium model to estimate the removal of tariffs to US imports of footwear that would generate about $501 million in welfare gains in 1996. In the very few instances in which benefits to footwear industry were estimated, cross-section data, which was static for particular years, formed the bases of these estimates.