ABSTRACT

This chapter aims a small sample of some thirty three categories of United States (US) textile and apparel goods imports from the Caribbean and Mexico was chosen. It examines these areas, it is important to look at the particular provisions in the North American Free Trade Area (NAFTA) agreement that deal with them. Under the agreement, the US, Canada, and Mexico promised to phase out over ten years their customs duties on textile and apparel goods manufactured in North America that meet the NAFTA rules of origin. It was agreed that the tariff phase-out on most agricultural products would occur over ten years. But on such "highly sensitive products" as corn and dried beans for Mexico, and orange juice and sugar for the US, the tariff phase-out would take another five years. To assess the impact of any potential substitution by the US of Mexican sugar and textile products for similar Caribbean products, it is necessary to disaggregate these imports.