REGIONAL PRODUCTION NETWORK LED BY THE U.S. TEXTILE INDUSTRY AND THE IMPACT OF THE 2006-2008 U.S.-CHINA TEXTILE AGREEMENT

Sheng Lu, Jung Ha-Brookshire

Abstract


A regional production network (RPN) refers to a business cooperation system among firms in different countries involving a division of labor to develop, manufacture, and market specific commodities. This study focused on the trade flow relationships within the U.S. Textile and Apparel Regional Production Network (U.S. T&A RPN) and the impact of the 2006-2008 U.S.-China Textile Agreement on the U.S. T&A RPN. The study found that the more the United States imported apparel from China, the less the U.S. textile industry exported yarns and fabrics to Mexico and countries in the Caribbean Basin region, The study also found that the 2006-2008 U.S.-China Textile Agreement had a profound trade disruption effect on apparel imports from China to the United States, yet little or no impact on textile or apparel trade within the U.S. T&A RPN.

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