Title

NAFTA as a Means of Raising Rivals' Costs: A Comment

Document Type

Article

Publication Date

2-1-2001

Department

Finance, Real Estate, and Business Law

Abstract

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.

Publication Title

Review of Industrial Organization

Volume

18

Issue

1

First Page

127

Last Page

131