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.
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.
Market studies reveal great opportunities in the U.S. market for ready to consume tilapia fillets.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
Fresh tilapia fillets which are ready to prepare became today the most important choice for the farmers in the Department of Huila in Colombia, when competing in the world market.
Since the entry into force in 2006 of the DR-CAFTA, the tip in favor of the U.S. in the trade balance has multiplied by 5.
"The Central America to which President Barack Obama is coming to visit on on Friday is a region that maintains multiple communication vessels with the United States, including a growing trade relationship which in 2012 amounted to $40 billion, although very much in favor of the American power," reported Prensa.com.
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.
With the entry into force seven years ago of the Free Trade Agreement with U.S., Nicaragua's exports to the country have increased by 133%.
The country has become more attractive to investors, it sectors have become technical and Nicaraguan small and medium enterprises have managed to benefit from technical assistance programs.
The products that have been favored the most by the FTA signed by Central America and the Dominican Republic are green coffee, meat, seafood, sugar, textiles and cheese.
Arriving in the country are: Walmart Global Food Sourcing Central America, Bagley Produce, Farm Fresh Market, Anthony Marano Company, Clarke & Stephen, LLP Legal Translator and Total Quality Logistics.
According to Laprensa.com.ni , the six "major U.S. companies will arrive in Managua on 28 November to explore shopping opportunities in agribusiness in Nicaragua, and to get to know the facilities offered by the country for doing business."
In U.S. restaurants tropical fruits at are fast becoming favorites.
A statement from the Costa Rican Foreign Trade Promotion Office (PROCOMER) reads:
Restaurant chains in the U.S. demand more tropical fruits
The tropical fruit category is fast becoming a favorite in the food service chain in the U.S., "we are seeing tropical products, including mangos, becoming increasingly popular in the food operations sector", explained Charlie Eagle, vice president of the business development company Southern Specialties Inc.
Textile exports to the United States reported at the end of 2011 an increase of 25%, with the largest exporter being Honduras, followed by El Salvador.
Marisa Mont, a technician at the Economic Integration Secretariat, outlined the results, "Recovery begins from 2010 and is growing exponentially. This demonstrates an upward trend and that clearly is going to continue, although it is probably not going to keep growing by 25%, but it is an uptrend.
Regional exporters of fresh food products to the United States must renew their registration with the FDA between October 1 and December 31.
A statement from PROCOMER reads:
Costa Rican exporters must renew their registration with the U.S. FDA
Costa Rican exporters of food and fresh produce as well as other countries whose products are destined for the U.S., must renew their registration with the FDA as part of the measures included in the Food Safety Modernization Act (FSMA), adopted earlier this year to improve the safety of food consumed in this country.
Many Central American exports to the Northern country will be affected by the increased competitiveness of Colombian products.
The entry into force of an FTA between Colombia and the USA brings new challenges to many economic sectors in Costa Rica and other Central American countries who will now competing with Colombian products in the same entering in the duty-free category.
Unilever, which owns the Lizano line, will be selling products in these new markets, the first ones outside of Central America.
California, Texas, New York and Florida will be the first U.S. states where Lizano sauces will be sold in local stores.
"According to Marcelo Rosatto, the company’s vice president of food marketing for the region, the plan is to penetrate the so-called "nostalgia market", which is made up of people in the country looking for Hispanic products," reported Elfinancierocr.com .
The company Footwear Distributors and Retailers of America sees great potential in Nicaragua for increasing their footwear exports to the U.S. market.
In its annual prognostic report on the footwear industry, entitled ‘2012 Annual Footwear Sourcing Forecast’, Footwear Distributors and the Retailers Association of America (FDRA), said that Nicaragua is a "rising star" that has great potential to increase shoe exports to the U.S.
From March new requirements imposed by the Food and Drug Administration will be implemented progressively on food imported by the United States.
The U.S. Food and Drug Administration (FDA) will begin to implement requirements for a new Food Safety Law relating to products exported to the country from March.
Among other changes, from now on there will be stricter rules on labeling, improved hygiene conditions, prohibition of certain elements in food preparation and nutritional information.
A bill will impose more stringent requirements for labeling, product production and processing, and even the prohibition of certain ingredients.
Starting from March, the U.S. will toughen requirements for exports to its market through the Safety Act or Food Safety Modernization Act, which aims to prevent illness from the consumption of imported foods, reported Prensa.com.