Both the economic literature, and the data compiled in this report, indicate low exchangerate
pass-through to U.S. import prices, particularly for consumer goods. However, estimates of
exchange-rate pass-through for various countries indicate it varies by import source. The lowest
exchange-rate pass-through was found for imports from Asian countries--the NIEs and Japan.
Exchange-rate pass- through appears to be highest for the Latin America (Mexico) and Canada,
with the EU in between. The higher rate of exchange-rate pass-through for Latin America and
Canada, may be linked to the interrelated manufacturing processes between these countries and
the United States, although this is not explored in the paper.