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Prior to NAFTA, the broom-corn broom industry or the broom employment of about 1,500 nationwide generate sales estimated at $100m million in 1993. There was an intermittent rise and fall of apparent consumption of broom corn brooms per dozen as follows:
Market share for the US for broom-corn brooms is 70.9% for 1991, 73.3% for 1992, 72.4% for 1993, 72.3% for 1994 and 64.8% for 1995.
In the case of the broom-corn broom, it was pointed out that by 1996, there were only about 600 nationwide employees for the broom industry in the United States. Of the total imports in 1991, Mexico supplied 52% or roughly 11% of the total consumption. Panama supplied 14% of the total import or estimated 3% of the total US consumption, Honduras represented 10% of the total import or roughly 2% of total consumed. Hungary held 13% of the total import and represents about 3% of the total 1991 US consumption.
In consideration of the presented data, there is a levelling and balancing of market share as an effect of the NAFTA. It is expected that lifting of tariffs allows exchange of goods and services that will give a chance for lower cost products to compete with higher costing product . Below summarises that effect of NAFTA on the broom-corn broom:
Imports come from Mexico, Honduras, Panama, Colombia and Hungary. The total import in 1991 was about 20.1% of the apparent consumption, with US supplying about 79%. Import fell by roughly 19% by 1992 with US sourced at 81%. Import rose at 23% by 1993, decreasing US counterpart to 76%. By 1994, total consumption grew but import also grew at 29% while US suppliers were able to ship only about 70%. ...
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