Textile Competitiveness and Trade Agreements

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.

Tuesday, September 25, 2012

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.

An article in Laprensagrafica.com cites a CAMTEX report which states that "the chief operating officer of the Salvadoran textile company Pettenati, Francesco Pilenga, said "If this agreement came into force today, I think it very likely it would reduce by half the textile and apparel industry in Central America, not only the Salvadoran one".

"Last year, Vietnam exported to the U.S. $6.6 billion in ready-made garments, becoming its second largest supplier, El Salvador, meanwhile, exported $1.800 billion worth, ranking twelfth in the list.

However, there is a relevant difference, 93% of exports from El Salvador came with zero tariffs, while Vietnam paid between 7% and 32% in tariffs (import taxes) for their products.

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.

Central America and the Trans-Pacific Agreement

September 2014

Analysis of the impact of the Trans-Pacific Partnership on the region.

The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).

Regional Textile Industry Could Lose Its Advantages

July 2013

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.

The Ambassador of El Salvador in that country, Ruben Zamora, has already raised concerns with officials from the U.S.

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