al going to Mexican sewing shops. Between 1994 and 1997, fabric and yarn exports to Mexico, mostly in the form of cut pieces ready for sewing, nearly doubled to around $2.5 billion per year. In addition, US manufacturers of textile equipment have also seen an increase in their sales as apparel factories in Mexico order textile equipment. Exports of textile equipment to Mexico nearly doubled in 1995 over the 1994 level to $35.5 million.Although there have been job losses in the US textile industry, advocates of NAFTA argue that there have been net benefits to the US economy in the form of lower clothing prices and an increase in exports from fabric and yarn producers and from producers of textile machinery. Trade has been created as a result of NAFTA. The gains from trade are being captured by US consumers and by producers in certain sectors. As always, the establishment of a free trade area creates winners and losers, but advocates argue that the gains easily outweigh the losses. ...
