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
24
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

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search