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CAFTA-DR Modification Will Promote Us And Regional Job Opportunities Through The Textile Sector.

2011/3/8 13:34:00 65

CAFTA-DR Textile Sector Area

The office of the United States trade representative announced at the Salvatore conference in San Salvador in February 23rd that the Dominica Republic - Central American Free Trade Agreement (CAFTA-DR) should be amended to promote job opportunities in the United States and the region and create new opportunities.

Export opportunities

These changes will promote regional trade and economic integration of textiles and clothing, which is very important for regional production and employment.


These CAFTA-DR changes will also expand export opportunities, revitalize the Western Hemisphere textile and apparel supply chain and help the Western Hemisphere effectively face the challenges of Asian competitors.

The most important modification is that we now require some monofilament.

Sewing thread

The origin is the United States, or produced in the United States or produced in the CAFTA-DR area, so that these goods meet the preferential treatment conditions.


This type of sewing thread has been used more and more in the clothing industry, but the original agreement has not made this requirement.

The sewing thread industry in the United States supports hundreds of job opportunities in advanced technology factories.


After the revision of the agreement, the risk has been eliminated. Now the amount of regional sewing lines is increasing and the opportunity for work is likely to increase.

Other modifications involve treatment of some pajamas and CAFTA-DR shortage list, including elastic yarn, knitted waistband and knitted molding components.


At the meeting of the Free Trade Commission, participants also agreed to increase the cumulative restrictions and encourage greater regional production integration through the reciprocal tariff free access to Mexico and Canada in Central America and in the multi Canadian apparel industry, as advocated by CAFTA-DR.


The annual cumulative increase is based on agreement.

The restrictions will allow products imported from Central America and the Republic of Dominica to produce garments (including production inputs from Mexico or Canada) to enter the United States.

The agreement changes will take effect after the approval of CAFTA-DR governments.


In 2010, US textile and clothing exports to the CAFTA-DR region grew 25%, more than 19% of global export growth.

The CAFTA-DR area is the third largest export market for textile and clothing products in the United States, ranking in the the Atlantic free trade area.

In 2010, the market represented about US $3 billion in exports.

Exports to the CAFTA-DR region account for 16% of the total volume of textile and clothing exports in the United States.


US imports from CAFTA-DR area in 2010

textile

And clothing grew by 14% to $7 billion.

The CAFTA - DR area is the second largest supplier of textiles and clothing in the United States, after China, which has risen from third to second in Vietnam last year.

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