PROPOSED MODIFICATIONS TO THE NAFTA RULES OF ORIGIN WOULD HAVE LITTLE EFFECT ON U.S. PRODUCTION BUT COULD SIGNIFICANTLY AFFECT TRADE IN CERTAIN PRODUCTS, SAYS USITC

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Proposed modifications to the North American Free Trade Agreement (NAFTA) rules of origin are likely to have a negligible effect on U.S. industry, but they could result in a significant increase in U.S. trade for products covered by some of the proposed modifications, reports the U.S. International Trade Commissoin (USITC) in its publication Probable Economic Effect of Certain Modifications to the North American Free Trade Agreement Rules of Origin.

The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR).

As requested, the report provides advice on the probable economic effect of 212 proposed modifications to the NAFTA rules of origin on U.S. imports and exports under NAFTA, total U.S. imports and exports, and domestic industries producing the affected articles. Highlights of the report follow.

U.S. imports from NAFTA partners would likely increase significantly or substantially for certain products covered by eight of the proposed rules, including certain chemical products; diesel engines for marine propulsion; and smoking pipes. However, the likely effect on total U.S. imports for products covered by all of the proposed rules is expected to be negligible.

U.S. exports to NAFTA partners could potentially increase significantly or substantially for products covered by 12 of the proposed rules, including sauces derived from fish and non-alcoholic preparations of yeast extract; certain chemical products; plastics; articles of rubber; certain articles of copper; certain electronic products; sunglasses; and various toys and games. In addition, total U.S. exports could increase significantly for sauces derived from fish and non-alcoholic preparations of yeast extract. Any increase in total U.S. exports of all other products is expected to be negligible.

For each of the 212 proposed modifications, the effect on U.S. industries producing the affected articles is expected to be negligible.

Probable Economic Effect of Certain Modifications to the North American Free Trade Agreement Rules of Origin (Inv. No. NAFTA-103-027, USITC publication 4438, November 2013) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4438.pdf.

The report may be requested by emailing pubrequest@usitc.gov, by calling 202-205-2000, or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

USITC general factfinding investigations, such as this, cover matters related to tariffs or trade and are generally conducted at the request of the USTR, the House Committee on Ways and Means, and the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

News Source : PROPOSED MODIFICATIONS TO THE NAFTA RULES OF ORIGIN WOULD HAVE LITTLE EFFECT ON U.S. PRODUCTION BUT COULD SIGNIFICANTLY AFFECT TRADE IN CERTAIN PRODUCTS, SAYS USITC

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