House Lawmakers Push Renewal of CAFTA Duty-Free Apparel Program
The looming expiration of a tariff elimination program for Nicaraguan apparel, put into effect through the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), may soon influence U.S. importer decision-making on sourcing of apparel from the country, said a bipartisan group of six House lawmakers in a recent letter to House Ways and Means and Senate Finance leadership. Due to expire on Dec. 31, 2014, the program permits duty-free import of Nicaraguan apparel regardless of the origin of the fabrics and yarns, according to the letter.
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“The program has been tremendously successful, and those participating in the program are urging Congress to extend it at the soonest possible date,” said the lawmakers. “The value of U.S. imports using this CAFTA-DR benefit exceeds $500 million during the past twelve months; and the value of the U.S. fabric sales to Nicaragua represents about $100 million.” Expiration will “disrupt a key element” of the regional textile and apparel supply chain, said the letter. The lawmakers do not prescribe a specific method of renewing the program. Sen. Dianne Feinstein, D-Calif., introduced legislation (here) in June 2013 that would extend the program for ten years, though the bill has not moved since. Feinstein’s office did not respond to a request for comment.