Home / Knowledge / News / Textiles / CAFTA-DR to promote US & regional jobs through textile sector

CAFTA-DR to promote US & regional jobs through textile sector

07
Mar '11
On February 23, the Office of the United States Trade Representative announced a number of changes to the Dominican Republic – Central America – United States Free Trade Agreement (CAFTA-DR) at the Free Trade Commission meeting in San Salvador, El Salvador in order to promote U.S. and regional jobs and export opportunities. These changes will advance regional trade and economic integration in the textile and apparel sector, which is very important to regional production and employment.

The changes will also expand opportunities under the CAFTA-DR and encourage a vibrant textile and apparel supply chain in the Western Hemisphere to effectively face the challenge of competitors in Asia. Among the changes of particular significance is the clarification that certain monofilament sewing thread is now required to originate or be produced in the United States or the CAFTA-DR region in order for goods to qualify for preferential tariff treatment.

This type of sewing thread, while increasingly used within the apparel industry, had been omitted from the requirements of the original agreement. The sewing thread industry in the United States supports hundreds of jobs at technically sophisticated facilities such as Unifi Manufacturing, Inc. in North Carolina and Milliken & Company in South Carolina.

With this change, these jobs, which had been at risk, will now have the potential to grow as regional usage of sewing thread increases. The other changes relate to the treatment of certain nightwear, as well as the “short supply” list in the CAFTA-DR and how several products are treated in the context of that list, including elastomeric yarns, knit waistbands and knit-to-shape components.

At the Free Trade Commission meeting, participants also agreed to increase the cumulation limits to encourage greater integration of regional production through limited reciprocal duty-free access with Mexico and potentially Canada to be used in Central American and Dominican Republic apparel, as called for under the CAFTA-DR.

The annual limits for cumulation were increased to account for the inclusion of the Dominican Republic, as provided for under the Agreement. These limits allow specific quantities of designated apparel products to enter the United States from Central America and the Dominican Republic containing inputs from Mexico and potentially Canada. The agreed changes will take effect once approved by each government party to the CAFTA-DR Agreement.

U.S. exports of textiles and apparel to the CAFTA-DR region grew by 25 percent in 2010, exceeding the growth to the world at 19 percent. The CAFTA-DR region is the third largest export market for U.S. textile and apparel products, behind NAFTA trading partners. This market represented approximately $3 billion in exports in 2010. Exports to the CAFTA-DR region comprised 16 percent of total U.S. textile and apparel exports.

U.S. imports of textiles and apparel from the CAFTA-DR region grew 14 percent in value in 2010, reaching $7 billion. CAFTA-DR is the second largest supplier of textiles and apparel after China, moving from third place behind Vietnam last year.

United States Trade Representative


Must ReadView All

Vietnamese side of the border crossing with Hekou, China. Pic:  Klodien | Dreamstime.com

Textiles | On 27th Nov 2021

Efforts on to boost trade between Chinese & Vietnamese provinces

Trade agencies of Lao Cai province in the northwest region of Vietnam ...

Pic: Shaja | Dreamstime.com

Textiles | On 27th Nov 2021

US’ imports of polyester textured yarn to drop in coming months

The US’ imports of polyester textured yarn of HS code 540233 are...

Pic: Tatiyana Akimova | Dreamstime.com

Textiles | On 27th Nov 2021

Sri Lanka’s textile & garment exports on path to cross $5bn this year

After registering a steep fall of 21 per cent year-on-year to $4.423...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Footwear Industry, Footwear Retailers

Footwear Industry
Footwear Retailers

Still struggling to mop up higher sales

Textile Industry, Head honchos

Textile Industry
Head honchos

Trainers faced immense challenges as most were not tech-savvy

Gus Bartholomew,

Gus Bartholomew

<b>Gus Bartholomew</b>, co-founder of SupplyCompass, explains to <b>Subir...

Ahmet Gecikli,

Ahmet Gecikli

Ser Mekatronik, founded in 2008, is specialised for providing mechanical...

G Tumbarello,

G Tumbarello

Lilly + Sid is an award-winning organic children's clothing company from...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Reynu Taandon, Label Reynu Taandon + Nikhita

Reynu Taandon
Label Reynu Taandon + Nikhita

Renowned womenswear designer <b>Reynu Taandon </b>has been serving the...

Asmita Marwa, Asmita Marwa Design

Asmita Marwa
Asmita Marwa Design

Indian fashion designer Asmita Marwa has been rated by Vogue as one of the ...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

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

Leave your Comments


November 2021

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


Advanced Search