State-Level Equity and the Demise of the Agreement on Textiles and Clothing

Abstract

According to the Agreement on Textiles and Clothing (ATC), all quantitative restrictions on textile and apparel commodities are to be removed on January 1, 2005. This paper examines the economic impacts of the 2005 liberalization at the U.S. state level. The methodology utilizes a regional model of the U.S. economy built up from individually consistent IMPLAN social accounts for each state. The model incorporates forward-looking dynamic responses and equilibrium unemployment. The results are useful in quantifying the geographic distribution of the benefits and costs of the ATC's expiration on the U.S. economy.

Keywords: ATC, MFA, textiles, clothing, quotas, simulations

JEL Classification: F13, F17, R13