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.
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%.
Central America's direct competitor in the market is using the TLC it has with the northern country to increase sales of agricultural products, textiles and other manufactured goods.
The reduction in sales of Colombian oil to the United States is forcing the South American country to diversify its exports to the North American market, where positioning has been improved mainly of agricultural products such as fruits and seeds and manufactured goods such as textiles and apparel.
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.
Products sold to U.S. are being detained or rejected because their labels are not in English or have incomplete information.
"A lot of products are being detained by the Food Drug Administration (FDA), because they do not meet simple requirements such as having a label, I understand this is the reason why there is a considerable amount of rejection," said Gonzalo Ibanez, associate regional director of the FDA.
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.
Before the end of April, the Philippines will be sending its first shipment of three thousand tons of Cavendish bananas to the United States.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The Philippine government said on Monday that the first shipment of 3,000 tons of Cavendish bananas bound for the United States will finally be sent before the end of April.
Using first world technology and management the Panamanian company Veggie Fresh Invest will be sending two containers a week of hydroponically produced peppers to the U.S..
"I would say we did things as they should be done, which is a little opposite to how traditional farmers do things: first plant and then look for the customer," said the entrepreneur Guillermo Villarreal, owner of the company.
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.
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