Issues Related to Textile/Apparel and Auto and Auto Parts Industries

T-GGD-93-27: Published: May 4, 1993. Publicly Released: May 4, 1993.

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GAO discussed the potential impact of the North American Free Trade Agreement (NAFTA) on the textile, apparel, and auto industries. GAO noted that: (1) the U.S. International Trade Commission predicts that NAFTA will have a positive impact on U.S. textile and automotive industries, but a negative impact on the U.S. apparel industry; (2) the labor policy advisory committee believes NAFTA does not promote U.S. economic interests; (3) NAFTA rules of origin are intended to define those goods entitled to preferential tariff treatment and prevent Mexico from exporting products from non-NAFTA countries; (4) NAFTA has special safeguard provisions that apply to textile and apparel product imports; (5) Customs will be responsible for enforcing NAFTA rules of origin; and (6) Customs has initiated several efforts to develop a trade enforcement strategy.

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