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

Uzbekistan wants joint ventures with Hungarian textile firms

Textiles | On 20th Feb 2018

Uzbekistan wants joint ventures with Hungarian textile firms

Uzbekistan has offered Hungary to create joint ventures in the two...

Vietnam’s textile & garment exports up 10.68% in 2017

Textiles | On 20th Feb 2018

Vietnam’s textile & garment exports up 10.68% in 2017

Vietnam came very close to achieving its 2017 textile and garment...

Courtesy: Urban Outfitters

Apparel/Garments | On 20th Feb 2018

Urban Outfitters Q4 FY18 sales climb 5.7%

The net sales of Urban Outfitters, Inc., a leading lifestyle products ...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sonam & Paras Modi
SVA

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

February 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search