NAFTA as a Means of Raising Rivals' Costs: A Comment
Finance, Real Estate, and Business Law
The purpose of this comment is to clarify and extend a recent paper entitled "NAFTA as a Means of Raising Rivals Costs''. The paper indicates that the complexity of complying with the rules of NAFTA may lead to a decrease in competition in the domestic market. The comment shows that the complexity of NAFTA is related to the rules of origin which are a part of virtually any free-trade agreement. Since rules of origin are a necessary part of virtually any trade agreement, the conclusions of the paper are not restricted to NAFTA but can be generalized to a large part of international trade.
Review of Industrial Organization
Sawyer, W. C.
(2001). NAFTA as a Means of Raising Rivals' Costs: A Comment. Review of Industrial Organization, 18(1), 127-131.
Available at: http://aquila.usm.edu/fac_pubs/3976