The North American Free Trade Agreement (NAFTA): its effect on South Asia (original) (raw)

This paper analyzes the impact of the North American Free Trade Agreement (NAFTA) on South Asian countries, focusing on trade dynamics and potential losses. Utilizing a partial equilibrium trade projection model developed by UNCTAD and the World Bank, the study quantifies the detrimental effects on South Asian exports, particularly in the textiles and clothing sector, with projections indicating a total export decline of around 1%. The findings highlight the significant competitive advantage Mexico may achieve in the U.S. market due to preferential tariff removals, emphasizing the necessity for the completion of the Uruguay Round to mitigate adverse impacts on South Asian economies.