RTAs and Export Competitiveness: Nicaragua's Apparel Exports

This article evaluates the impact of the temporary Tariff Preference Levels (TPLs) granted to Nicaragua under the Central American Free Trade Agreement (CAFTA) and the consequences of TPL expiration. Using trade statistics, country- and firm-level data from Nicaragua’s National Free Zones Commission (CNZF) and data from field research, we estimate Nicaragua’s apparel sector will contract as much as 30-40% after TPLs expire. Our analysis underscores how rules of origin and firm nationality affect where and how companies do business, and in so doing, often constrain sustainable export growth. The article was published in the  Cambridge Journal of Regions, Economy and Society, Volume 8, Issue 3, November 2015, pages 403-420.