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Economic Integration In North America: Changes In Us Trade Policy And The Effects On Texas Regional Exports To Mexico, Jorge Eduardo Mendoza

Mission Foods Texas-Mexico Center Research

Texas is the leading US state exporter to Mexico, trading oil products, automobile components and electronics. The USMCA will impose a restructuring of the North American supply chains to meet the new input content requirements. In order to evaluate the impact of the changes in tariffs arising from the new rules of origin requirements, an econometric model with different tariff scenarios was estimated. The estimations indicate that the distance to Texas and the size of the economies of the states of Mexico are factors that impact Texas exports to Mexico. Tariffs under the USMCA would have a minor but positive …