Regional Textile Industry Could Lose Its Advantages

The Trans-Pacific agreement being negotiated by the U.S. could authorize Vietnam to get threads from China and export duty-free textiles to the North American nation.

Monday, July 22, 2013

The Ambassador of El Salvador in that country, Ruben Zamora, has already raised concerns with officials from the U.S. trade office (USTR). Zamora affirmed that representatives from textile companies have visited the U.S. and plan to make more visits in order to draw attention to the situation.

"The United States says that the Central American countries need to integrate more in order to take better advantage of the FTA, but in actual fact it is in the textile area where we, the Dominican Republic, Guatemala, El Salvador and Honduras, are the most integrated ," said Zamora.

"Elperiodico.com.gt reports:" If the 11 countries negotiating the Trans-Pacific Partnership (TPP) end up allowing Vietnam this kind of management in the textile area, 100,000 jobs will be lost in Central America and 500,000 in United States, said Zamora, who released a letter which 164 U.S. lawmakers from both parties sent on July 10 to USTR, raising awareness of the Central American complaint ".



More on this topic

Textiles: More Lobbying After Loss of Benefits in the US

September 2015

Efforts are growing to minimize the impact of the possible signing of the Trans-Pacific Partnership Agreement, and a tariff reduction program with long deadlines for sensitive products has been proposed.

As negotiations proceed to sign the Trans-Pacific Partnership Agreement (TPP), the textile industry in El Salvador is stepping up its efforts to maintain the conditions of the CAFTA treaty and minimize the impact that the TPP will have on the sector in the long term. One of the main risks is that "... Vietnam could introduce products from China and then export them tariff-free to the United States, which would give them a huge competitive advantage. "

El Salvador and the Trans-Pacific Partnership

February 2015

The government is seeking US support in order to improve conditions in the negotiation of the Trans-Pacific Partnership to minimize the impact it will have on sectors such as textiles.

From a statement issued by the Ministry of Economy of El Salvador (MINEC):

The Minister of Economy, Tharsis Solomon Lopez began a series of meetings in Washington DC with Senators, Congressmen, trade officials from the US Government and private entities, in order to present the position of the Salvadoran government in the negotiations for the Trans-Pacific Partnership, known by its acronym TPP, in relation to the impact it could have on Salvadoran exports carried out under the Free Trade Agreement with the United States, known as CAFTA-DR.

Honduras: Cheap Power for Textile Industry

February 2014

The private sector and the government are developing a plan to maintain competitiveness and minimize the effect of the zero tariff entry of textiles to the U.S. market from Vietnam.

The program being worked on is called 'Total Occupancy of Industrial Parks'. The plan involves reducing the cost of electricity in the maquila parks, developing a project for generation which will devote its production to industrial parks and offer "in the case of new projects, a discounted rate (per kilowatt)".

Textile Competitiveness and Trade Agreements

September 2012

If Asian countries like Malaysia and Vietnam get access for their textiles to the U.S. under the same conditions granted in the DR-CAFTA, the Central American textile sector will be at risk.

The Salvadoran Chamber of Textiles, Clothing and Free Zones (CAMTEX), warns of the risk posed to the sector if the Trans Pacific Partnership Agreement (TPP) comes into effect.

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