"Nicaraguan Textile Companies Do Not Need TPL"

The Under Secretary of Commerce in the United States sees no need for renewal of preferential tariff arrangements, which up to now have favored Nicaragua's textile industry.

Tuesday, December 2, 2014

Statements by the senior official of the Obama administration fell like a bucket of cold water over textile entrepreneurs, who claim that without the renewal of TPL, production costs will increase by up to 40%.

Estrategiaynegocios.net reports that the US Secretary of Commerce, Walter Bastian, said "... This is an industry that can now compete globally and maintain its position in the market (...) with or without those tariff preferences. "
"... The Nicaraguan government and employers are asking for an extension through 2024, "however," ... the decision is in the hands of the Obama administration, which has not announced an official final position. "

For his part, the President of the Superior Council of Private Enterprise, José Aguerri, added "... The TPL has been a prerogative that was given to Nicaragua to shorten the gap which exists between the Nicaraguan economy and other economies in the region. Also duty free exports to the United States even of clothing made of yarns and fabrics from third party countries for a maximum of one hundred million square meters per year are permitted. "



More on this topic

TPL Needed for Central American Textile Companies

November 2014

Nicaraguan businessmen have proposed that Central America as a whole operates a preferential tariff treatment in the US for imports of textiles in the region.

After trying to negotiate, through several formats, tariff preference levels (TPL), so far unsuccessfully, textile entrepreneurs are now appealing to the union of the region to address the issue with the US once again.

Nicaragua: TPL for Textile Exports At Risk

June 2014

A bill that is being analyzed by the U.S. Congress aims to reduce the level of tariff preference to only 6% of imports from Nicaraguan textile factories.

Although the possibility exists of an extension of the current Tariff Preference Level (TPL) until 2015, American congressmen have proposed that the benefit be granted only on cotton pants, which represent the lowest proportion of Nicaraguan textile exports to the United States.

U.S. May Not Renew TPL with Nicaragua

July 2013

The U.S. Undersecretary of Commerce stated that Nicaragua no longer needs tariff preferences for its textile industry.

Nicaragua's textile industry could lose tariff preferences in 2014, said an American official who believes that renewal is unnecessary .

"I think that this is an industry that could compete globally today and maintain its position in the market (...) with or without " those preferences, said Walter Bastian, U.S. Undersecretary of Commerce.

Tariff Preferences for Textiles At Risk

April 2013

The preferential system which allows Nicaraguan textiles made with raw materials from countries outside of the DR-CAFTA to enter the U.S. without tariffs will expire at the end of 2014.

"... By the end of next year the nine-year grace period given by the United States to Nicaragua will expire, a benefit known as tariff preference level (TPL) which allows the country to export clothing made from yarn and fabrics from third countries for a maximum annual volume of one hundred million square meters." noted an article in Laprensa.com.ni.

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