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

Abstract

Purpose This study aims to empirically investigate the potential impact of the Trans-Pacific Partnership (TPP) on US textile and apparel manufacturing. Design/methodology/approach This study adopts the Global Trade Analysis Project (GTAP) computable general equilibrium model based on the latest GTAP9 database. Findings 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. Originality/value 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.