THE EFFECT OF NAFTA ON THE US SPINNING INDUSTRY

Abstract The purpose of the research presented in this paper has been to examine the effects of NAFTA on the US short staple spinning industry. Yarn, particularly cotton, plays a critical role in the apparel supply chain, and therefore the factors that affect yarn, in turn, also affect apparel. Since the inception of NAFTA in 1994, many changes have taken place in the US short staple spinning industry, as well as the entire textile and apparel industry. However, this paper will examine current trends, which have resulted primarily from NAFTA, but also the Asian financial crisis. Specific focus will be given to yarn production levels, price, imports, exports and labor.