Home / Knowledge / News / Apparel/Garments / Nicaraguan clothing sector to lose 33,000 jobs if TPL ends
Nicaraguan clothing sector to lose 33,000 jobs if TPL ends
Jun '14
courtesy: Anitec
courtesy: Anitec
The apparel manufacturing sector in Nicaragua will lose about 33,000 jobs if the Tariff Preference Level (TPL), which will expire on December 31, 2014, is not extended, according to the Nicaraguan Association of Textile and Apparel (Anitec), reports El Nuevo Diario.
In 2004, the United States signed the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. Subsequently, Nicaragua was granted a TPL that allows apparel made of certain cotton and man-made fiber to enter the U.S. duty free under CAFTA-DR if it’s assembled in Nicaragua, regardless of the origin of the fabrics.
The TPL is limited to 100 million square meter equivalent units (SME) per year, according to the U.S. Department of Commerce’s Office of Textiles & Apparel (OTEXA).
In addition, the TPL contains a “unique provision for woven trousers (categories 347/348 and 647/648),” says OTEXA. Nicaraguan trouser producers must use matching amounts of U.S. and foreign fabrics to make the trousers, and the fabrics must be matched one-for-one, and the amount of trousers that can be imported to the United States is capped.
The non-extension or end of the TPL facility would negatively impact employment and clothing exports of Nicaragua to the US, says Anitec director Dean Garcia, who estimates that such a step would result in loss of at least 30 percent or 33,000 of the 110,000 people currently employed in the sector.
Recently, a delegation of the Nicaraguan Government and private companies traveled to Washington and requested a 10-year extension of the TPL, to enable Nicaraguan firms to continue selling apparel, which are made from raw material imported from non-CAFTA-DR countries, to US companies.
Apparel constituted 30 percent of all exports made by Nicaragua to the US last year, according the Free Zone Corporation.
The US Government is soon going to decide on legislation S. 1136, introduced by Senator Dianne Feinstein in June last year, seeking extension of the Nicaragua TPL for 10 years, through 2024.

Fibre2fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search