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Abstract

A number of recent studies examine the impact on exporting countries of removing NTBs on textiles and clothing. However, no single study explicitly models the effects on the new SubSaharan Africa exporters. With the implementation of AGOA, there has been considerable growth in the textile and clothing industry in the African subcontinent. We examine the welfare implications on Africa of removing all textile and clothing NTBs under the ATC. By incorporating the preferential treatment from AGOA into the GTAP framework, the authors hope to understand to what extent the completion of the ATC will eclipse AGOA. Furthermore, the authors examine post-ATC removal of all tariffs on textiles and clothing. While the completion of the ATC generates some loss for Sub-Saharan Africa, post-ATC tariff liberalization results in additional benefits for SACU and Other Southern Africa countries, resulting in a net benefit for these two groups but losses for the rest of SubSaharan Africa.

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