Nicaragua: Optimism in Textile Industry

Despite the challenges facing the Central American textile industry with the coming into force of the TPP and Asian competition, projections are that there will be growth of 8% in 2016.

Wednesday, February 17, 2016

The main reason is the decision of the US government to extend for ten years the tariff advantages enjoyed by Nicaraguan exports to the northern country, supporting them against the entry into force of the Trans-Pacific Economic Partnership Agreement (TPP).

The Nicaraguan textile industry is smiling, despite the challenging scenario facing this economic sector in Central America because of factors such as hefty Asian competition or changes in incentives globally with the entry into force of the TPP.

"... The garment sector could grow by about 8% in 2016, and will probably see growth of 10% up until 2017. We must take into account the stage of maturation of new projects, as they are coming into operation this year, " said Dean Garcia, executive director of the Nicaraguan Association of Textiles and Apparel (Anitec) to Elnuevodiario.com.ni. He added that exports of textiles and clothing fell by 2% in value in 2015, but grew in volume by more than 1%.



More on this topic

Central America Happy Over Trump´s TPP Decision

November 2016

If the United States withdraws from the Transpacific Agreement, there will be less risk of competition from Asian countries for the Central American textile industry.

If the US does eventually abandon the Trans-Pacific Partnership Agreement (TPP), as promised by President-elect Donald Trump, the Central American textile industry could benefit from the elimination of the possibility that the US, its main market, will buy textiles from Vietnam at lower prices. Since the start of negotiations for the TPP, the Central American textile industry has tried to negotiate bilaterally with the US in order to minimize the negative effects that the TPP could have on the industry in the region.

Woven Fabric Production in Nicaragua

November 2012

Millknit Industries will begin operations in early 2013, producing fabrics for clothing companies established in the free zones.

Following the closure of Core Denim in 2009, Nicaragua has had no cloth production, which is a disadvantage for the clothing sector, which has to import its raw materials.

Negotiations for Purchase of Cone Denim Textile Factory

April 2012

European investors are to acquire the Cone Denim Plant in Nicaragua, which has been closed for 3 years and could reopen in late 2012.

"It is a fact that this year the Cone Denim plant will be reopened. We're just waiting for the (purchase) negotiations to be completed," confirmed Dean Garcia, executive director of the Nicaraguan Association of Textile and Apparel Companies (Anitec), according to Laprensa.com.ni.

Textile Cone Denim Reopens in Nicaragua

January 2011

During the course of the year, the U.S. textile company will restart operations in the country.

The start-up would initially create 700 new jobs.

"The secretary of the National Free Zone Commission (CNZF), Alvaro Baltodano, and executive director of the Nicaraguan Association of Textiles and Apparel (Anitec), Dean Garcia, confirmed to the press that the reopening of the company is underway and will become official in the coming weeks,” according to an article at Laprensa.com.ni.

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