Nicaragua’s DR-CAFTA Apparel TPL Reduced Slightly by CITA
The Committee for the Implementation of Textile Agreements is reducing Nicaragua’s Tariff Preference Level for non-originating cotton and manmade fiber apparel under the Dominican Republic - Central America-U.S. Free Trade Agreement by 761,138 square meters equivalent.
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TPL Reduced as Nicaragua did not Meet Trouser Export Commitment
Effective July 6, 2010, Nicaragua’s 2010 TPL for non-originating cotton and MMF apparel is now set at 99,238,862 SME (from 100,000,000 SME). CITA states that the reduction of 761,138 SME is due to Nicaragua’s shortfall in meeting its one-to-one commitment for cotton and MMF woven trousers exported from Nicaragua to the U.S.
(In 2006, Nicaragua agreed that for each SME of exports of cotton and MMF woven trousers entered under the TPL, Nicaragua would export to the U.S. an equal amount of cotton and MMF trousers made of U.S. formed fabric of U.S. formed yarn. This commitment for cotton and MMF woven trousers applies to the first 50 million SME in 2009, the fourth year after the date of entry into force of the DR-CAFTA. Further, any shortfall in meeting this commitment that was not rectified by April 1 of the succeeding year would be applied against the TPL for the succeeding year. For 2009, the shortfall in meeting the one-to-one commitment is 761,138 SME1.)
1For 2008 the shortfall was 11,381,738 SME, more than ten times larger.
(See ITT’s Online Archives or 06/26/09 news, 09062620, for BP summary of 2009 reduction.)
CITA contact: Richard Stetson (202) 482-3400
BP Note
With this small reduction, and using June 25, 2010 data, the TPL is now estimated to close on 12/27/10 (instead of 12/30/10).