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ITC reports on possible modifications to NAFTA rules of origin

05
Jan '10
The U.S. International Trade Commission released public versions of its two reports concerning proposed modifications to North American Free Trade Agreement (NAFTA) rules of origin.

Certain Textile Articles Containing Rayon and Other Manmade Fibers: Effect of Modifications of NAFTA Rules of Origin for Goods of Canada and Mexico and Certain Textile Articles Containing Acrylic and Modacrylic Fibers: Effect of Modifications of NAFTA Rules of Origin for Goods of Canada were requested by the U.S. Trade Representative (USTR) in a letter received on July 30, 2009. The USITC's confidential reports were submitted to the USTR on November 30, 2009.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, provided advice on the probable effect of proposed NAFTA rules of origin modifications on U.S. trade and on domestic production for certain textile products.

The USITC's analysis indicates that for certain textile articles of rayon fibers, the proposed rule of origin changes could result in a small increase in U.S. trade under NAFTA, a negligible increase in total U.S. trade, and would have a beneficial effect on U.S. producers of such articles. For textile flock, dust, and mill neps; cut woven warp pile fabrics; and knit warp pile fabrics, the USITC's analysis indicates that the proposed rule changes could similarly result in a small increase in U.S. trade under NAFTA, a negligible increase in total U.S. trade, and would have a beneficial effect on U.S. producers of such articles. Finally, the USITC's analysis indicates that, for yarns and thread containing acrylic and modacrylic fibers, the proposed rule changes could result in a small increase in U.S. trade under NAFTA, a negligible increase in total U.S. trade, and a potential adverse effect on U.S. yarn producers.

U.S. International Trade Commission


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