USTR lauds critical updates in AGOA & CAFTA-DR

The TCF provision also provides retailers with an incentive to diversify their supply chains away from other sources, and provides low-cost sourcing options for American apparel retailers and consumers. AGOA also creates goodwill towards American companies that are undertaking a range of business partnerships with African companies, including sourcing apparel and other products from AGOA beneficiaries, and investing in rapidly growing African markets.

Benefits of Modifying CAFTA-DR Textiles Provisions

Critical to maximizing the FTA’s benefits: Legislation is also needed to implement technical corrections and modifications to the product-specific rules of origin for textile products covered under the CAFTA-DR—our agreement with Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. The modifications that, among other things, provide certainty of duty-free treatment for women’s and girls’ woven pajama bottoms and clarity as to how certain items will be treated on the textiles “short supply” list of the FTA, which will promote use of the free trade agreement.

Supports the American textiles industry and other U.S. businesses: The CAFTA-DR provisions will promote U.S. exports to the region and help support jobs and production in America.

The correction on sewing thread alone will help support an estimated 1,000 jobs in the United States, Central America, and the Dominican Republic, with U.S. production located in North Carolina, Florida, South Carolina, and Alabama. These changes to CAFTA-DR FTA have the strong support of the domestic textile industry as well as U.S. importers and retailers who source from the region.

Will mutually benefit the textile and apparel sectors of the United States and its CAFTA-DR partners: The United States, Central America, and the Dominican Republic have a long history of co-production arrangements.

U.S. exports of textiles and apparel to the CAFTA-DR region were $3.8 billion in the 12-month period ending February 2012, and increased 15 percent over the prior 12-month period. U.S. imports of textiles and apparel from the CAFTA-DR region were $8.0 billion in March 2011 through February 2012, 10 percent higher than the previous 12-month period. Approximately 73 percent of those imports were made from either U.S. or regional yarns and fabrics.

U.S. Trade Representative