Home / Knowledge / News / Textiles / Report on Economic Effects of Significant US Import Restraints released

Report on Economic Effects of Significant US Import Restraints released

01
Oct '09
The U.S. International Trade Commission announces the release of Economic Effects of Significant U.S. Import Restraints (Sixth Update).

The U.S. International Trade Commission's latest update in this series of reports presents results on the economic effects on the U.S. economy of removing significant U.S. import restraints in manufacturing and agricultural products.

The report estimates changes in U.S. welfare, output, employment, and trade that would result from the unilateral elimination of significant import restraints, specifically U.S. tariffs and tariff-rate quotas on certain agricultural products, textiles and apparel, and other manufactured products.

The Commission estimates that U.S. economic welfare, as defined by total public and private consumption, would increase by about $4.6 billion annually by 2013 if all significant restraints quantified in this report were unilaterally removed. Exports would expand by $5.5 billion and imports by $13.1 billion. These changes would result from removing tariffs and tariff rate quotas (TRQs) in the following sectors: sugar, ethyl alcohol, canned tuna, dairy products, tobacco, textiles and apparel, and other manufacturing sectors.

Although the weighted-average U.S. tariff on all goods fell to an historic low of about 1.3 percent in 2007, many restraints on trade remain.

Liberalization was considered in each sector with significant restraints to identify the economic effects, including the welfare effects, and to estimate the upstream and downstream effects. A summary of the key results for each sector is provided below.

Liberalization of the textile and apparel subsectors increases welfare by approximately $2.3 billion. Liberalization causes declines from 10–11 percent in domestic shipments and employment in yarn, thread, and fabric and apparel. Exports, production, and employment in apparel (cut pieces), yarn, thread, knit fabric, and broadwoven fabric decline considerably as a result of liberalization, which includes elimination of rule-of-origin-based requirements for U.S. inputs.

Domestic prices of these goods also decrease, leading to increased U.S. competitiveness in the global economy and a slight mitigation of the decline in U.S. exports caused by the elimination of rule-of-origin requirements. Effects on the textile products category are smaller.

During the nearly 20 years since the USITC began these studies, the weighted-average tariff on total U.S. imports fell from 3.4 percent in 1989 to approximately 1.3 percent in 2007; many nontariff measures have been eliminated, particularly in textiles and apparel; and trade (imports plus exports) as a share of GDP increased from 15 percent to 23 percent.

These changes largely resulted from trade liberalization over this period and over the past 75 years. In addition to updating the analysis of significant import restraints, this report includes a review of this recent history of U.S. trade policy and its effects on the U.S. economy. The principal conclusion of this update is that annual welfare in the United States, defined as total private and public consumption, would increase by $4.6 billion in 2013 if the significant restraints on U.S. imports were removed, according to estimates in this report.

Click here to read more details on report

U.S. International Trade Commission


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 17th Aug 2019

EBA benefit withdrawal to hurt 4 mn Cambodians: GMAC

The Garment Manufacturers Association in Cambodia recently said the...

Pic: Infinited Fiber

Textiles | On 17th Aug 2019

Infinited Fiber receives lead investment from RGE

Singapore-based RGE Pte Ltd has joined a group of investors including ...

Pic: Macy's

Apparel/Garments | On 17th Aug 2019

Macy's net sales down to $5,546 mn in Q2 of 2019

Macy's Inc reported net sales of $5,546 million in Q2 of 2019 ending...

Interviews View All

Arvind Saraf, Triveni Sarees

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Marcel Moser,

Marcel Moser

Switzerland-based Benninger is a leading manufacturer of technologically...

Pietro Turrin,

Pietro Turrin

Industrie Tessili Bresciane (ITB) has served numerous industries and...

Carmen Makover,

Carmen Makover

Leading the digital textile printing industry, Israel-based Kornit...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search