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Contribution to Book
The Effects of the NAFTA and ATPA on the Caribbean Basin Countries
The North American Free Trade Agreement (1994)
  • Robert C. Shelburne, United Nations Economic Commission for Europe
The degree to which the duty-free provisions of the North American Free Trade Agreement (NAFTA) and the Andean Trade Preference Act (ATPA) might erode the trade preferences given to the beneficiaries covered under the Caribbean Basin Economic Recovery Act (CBERA) are explored. The degree to which the beneficiaries have benefited from the provisions of the CBERA are discussed. The potential for trade and investment division are discussed, and the trade structures of the CBERA, ATPA and Mexico are compared. The exports to the United States from these three areas share a common concentration in three SIC groups - agricultural products, crude petroleum, and apparel; the ATPA and CBERA have a more similar trade structure than does Mexico and the CBERA. However, there are only a few items whose competitiveness is likely to be altered by the ATPA, thus the ATPA is unlikely to adversely affect the CBERA nations. The NAFTA is likely to increase Mexico's competitiveness relative to the CBERA nations in 111 8-digit HTS items which represent 52.6 percent of CBERA exports to the United States. Over half of these items are apparel items for which Mexico will receive duty-free treatment while exports from the CBERA nations will be subject to duty. Mexico will also get duty-free treatment for petroleum while the CBERA nations do not. There are a number of agricultural products which are eligible for duty-free treatment from the CBERA nations which are not currently duty-free from Mexico but will be duty-free for Mexico under the NAFTA. Several proposals to reduce the negative consequences of the NAFTA for the CBERA nations are discussed.
  • NAFTA,
  • ATPA,
  • Caribbean,
  • Trade Policy,
  • Trade Agreements,
  • Mexico,
  • Andean Trade Pact
Publication Date
June, 1994
Khosrow Fatemi and Dominick Salvatore
Pergamon Press
Citation Information
Robert C. Shelburne. "The Effects of the NAFTA and ATPA on the Caribbean Basin Countries" London, UKThe North American Free Trade Agreement (1994)
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