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.
During 2012, free zone exports stood at $1.9038 billion, equivalent to a growth rate of 8.6%.
Information published by the Central Bank of Nicaragua (BCN):
In 2012, free zone exports stood at $1.9038 billion, equivalent to a growth rate of 8.6%.The sectors which participated the most in the absolute growth of exports from the free zone in relation to 2011 were chasis, which contributed $65 million (42.9% of total), fishing, $37.6 million (24.8%), textiles, $32.2 million (21.3%) and tobacco $23.1 million (15.3%), among others.
After strong growth in the early part of the year, textile mills in the free zones of Nicaragua are reducing their workforce due to falling orders from the U.S.
In January and February, customer demand in the U.S. grew by 55%, but has declined in recent months according to the growth of inventories, said representatives of companies in the textile zones.
The Venezuelan Government is negotiating the purchase of 10 million jeans produced in Nicaraguan Free Zones.
A trade mission from Venezuela, which includes Government authorities and private businessmen, is touring Nicaragua’s free zones. Alberto Baltodano, technical secretary of the National Free Zone Commission (CNZF), remarked that this deal would imply $100 million in revenue for the textile sector.