Probable Economic Effect of Modifications to DR-CAFTA Rules of Origin and Tariffs for Certain Apparel Goods. Investigation No. DR-CAFTA-103-16

摘要

This report assesses the probable economic effect (PE) of modifications to the rules of origin and tariff treatment in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (DR-CAFTA) on certain apparel goods, as set forth in lettersof understanding signed in 2006 with the Dominican Republic and Costa Rica. Overall, the modifications will likely have a negligible impact on U.S. production and trade in the subject apparel goods (table ES-1). The rules change for pocket bag fabric, however, may help to slow the decline in existing domestic production and exports of pocket bag fabric to the DR-CAFTA region (Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras,and Nicaragua) and possibly help slow the growth in U.S. imports from Chinese and other lower-priced Asian suppliers that accelerated with the elimination of quotas on textile andapparel goods on January 1, 2005.