The textile and clothing trade agreements signed by the U.S. may bring about important adjustments in the international textile and cotton markets affecting trade flows between the US and Mexico. Mexico is the largest importer of U.S. cotton while the US market is critical for the Mexican textile/clothing sector This paper presents the results of a comprehensive econometric and simulation model that allows for the assessment of some of the implications of the Agreement on Textiles and Clothing's quota eliminations on Mexico's cotton consumption and U.S. cotton exports to that country.


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