Regional trade pacts and the competitiveness of the US textile industry

The U.S. textile industry has gone through much upheaval in the past two decades. As protective barriers are gradually phased out the industry is faced with stiff foreign competition. Regional trade pacts, such as NAFTA and CBI, on the other hand help to improve the competitiveness of the domestic textile industry. This paper looks at the trends in U.S. textile trade with the various trading zones and the various factors influencing textile imports and exports. We examine the impact of the new global environment, the regional trade pacts, NAFTA and CBI on the changing nature and pattern of trade. The overall trends indicate a significant decline in imports from the EU countries, Asia remains significant, but NAFTA and CBI countries are quickly gaining ground over the old trading partners. The OECD remains the most significant destination for U.S. textile exports followed by NAFTA and Latin American countries.