Impact of the Trans-Pacific Partnership (TPP) on US textile and apparel manufacturing: A quantitative evaluation

This study aims to empirically investigate the potential impact of the Trans-Pacific Partnership (TPP) on US textile and apparel manufacturing.

This study adopts the Global Trade Analysis Project (GTAP) computable general equilibrium model based on the latest GTAP9 database.

The findings of the study suggest that: the “yarn-forward” rule will not work effectively in the context of TPP; and the development of Vietnam’s local textile industry is a critical threat to the survival of US textile and apparel (T&A) manufacturing in the long run.

The findings of the study augment the understanding of the T&A-specific sectoral impact of TPP and address the particular concerns of the US T&A manufacturers with regard to the new business environment and the possible scenarios after the implementation of the agreement.