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 23rd Feb 2017

NAFTA renegotiation puts Mexico-US jeans trade at risk

The almost imminent renegotiation of the North America Free Trade...

Rick Helfenbein (left), president and CEO of AAFA, with Juan Estrada, chief of party, Hub; Courtesy: Hub

Apparel/Garments | On 23rd Feb 2017

AAFA inks agreement for best manufacturing in East Africa

The American Apparel & Footwear Association (AAFA) has entered into a ...

Mango vice-chairman and member of the board of directors Daniel Lopez (L) with Ananth Narayanan, CEO, Myntra & Jabong. Courtesy: Myntra

Apparel/Garments | On 23rd Feb 2017

Mango awards distribution & management rights to Myntra

Mango, the Spanish fast fashion brand, has awarded its master...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

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

Tony Ward
Tony Ward

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

Sonam & Paras Modi
SVA

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

Pranav Mishra
Huemn

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

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 2017

February 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