This economic analysis investigates the US textile industry's output supply and input demand pattern under the influence of North American Free Trade Agreement (NAFTA) and determines the significance of the agreement on the industry. This analysis employs the normalized restricted translog profit model as an analytical tool and introduces a time dummy variable in the model to distinguish the pre- and post-NAFTA years. The outcome of analysis shows the significant but negative effect of NAFTA on the industry's profit performance in the early years of the agreement, probably due to intensified import competition, fall of real output prices, and numerous mill closings. NAFTA, however, is identified as less significant than variable input prices of labor, material, and electricity. The elasticity estimates show the dominant role of maintenance and capital expenditures, followed by textile output and variable input prices in order, in determining the industry's output supply and input demand. Overall, NAFTA is...