Home / Knowledge / News / Textiles / Nicaraguan textiles may lose US tariff preferences
Nicaraguan textiles may lose US tariff preferences
Aug '13
Textile industry of Nicaragua may lose tariff preferences in the US, which are up for renewal in 2014, as s senior US official has said that such an extension of tariff preferences is not necessary.
The textile industry of Nicaragua could compete globally and maintain its position in the market with or without the trade preferences, Walter Bastian, US undersecretary of Commerce, said at a press conference in Managua.
The Preferential Tariff Regime (TPL) awarded by the US to textile companies operating in Nicaragua’s free trade zones (FTZs) expires in December, 2014.
The TPL allows duty-free export of clothing made of yarns and fabrics from third countries, to US for a maximum of 100 million square meters per year.
The Government of Nicaragua and entrepreneurs of the textile industries are calling for an extension of the TPL until 2024.
The US undersecretary said the ultimate decision is in the hands of the US administration and it has not yet announced an official final position regarding the TPL.
The Nicaraguan Association of Textiles and Apparel (Anitec) estimates that without TPL the production costs would increase by 40 percent and will affect jobs in factories that operate in a free zone.
In 2012, Nicaragua exported more than US$ 890 million in clothing, according to an official data.
Nicaragua has over 215 free zone companies employing more than 103,000 people and these companies together contributed US$ 700 million in Gross Domestic Product, in 2012.
Free zones in Nicaragua are exempt from income tax for the first 15 years of operation and also from sales tax, capital gains, and real estate, among others.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 25th May 2017

AAFA reinforces opposition to Border Adjustment Tax

The American Apparel & Footwear Association (AAFA) has reinforced its ...

Textiles | On 25th May 2017

Schlafhorst launches 2.5 millionth Autoconer unit

Schlafhorst, Germany’s leading textile machinery firm, has announced...

Textiles | On 25th May 2017

Mexican textile firm installs Monforts Montex 6500 stenter

Tizayuca Textil Vuva SA de CV, a vertically integrated producer of...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Sanjay Yagnik
Maa Tex Speciality

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

Paolo Ocleppo
Sandvik Hyperion

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Madhu Jain
Madhu Jain

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


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