A package containing technical changes to the rules of origin for textiles was ratified by the House of Representatives of the United States.
According to an article in Prensalibre.com Alejandro Ceballos, a member of the board of the Committee on Textiles and Clothing (Vestex) of Guatemala, said: "Spandex used in garments used to have to be native to the region, but this has now been relaxed and it can be obtained from other countries so as to make the article of clothing here."
The other change is related to monofilament yarn. "Now it must originate from the region in order to be able to be exported under the DR-CAFTA."
The third measure is related to the woman's pajama pants, "free export was established in the Treaty, but the tariffs were not noted, and that presented a legal problem. These have now been included in the text. "
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Aggressive measures must be taken in marketing and attracting investment in order to exploit the possibilities opened by the DR-CAFTA and changes in the global market.
From Diario de Centro América:
The CAFTA-DR region has opportunities for growth
The clothing and textile sector of the country is ready to compete globally.
A group of Democratic senators proposed a law to eliminate tariffs on textile products from 14 Asian countries.
Textile imports from those countries currently pay up to 28% when entering the United States.
Should the proposal be approved, a very likely scenario, the Central American countries would lose the trade advantage obtained with the U.S.
Applying the "country of origin" clause, clothing made in Central America from Mexican textiles will not be subject to U.S. import duties.
The measure, negotiated in 2003, allows U.S. imports of up to 100 million cubic meters per year of clothing made in Central America with Mexican textiles, under the country of origin clause.
Sector entrepreneurs are focused on increasing the added value of the garments to offset the fall in demand abroad.
According to the Commission on Textiles and Clothing (Vestex) of the Guatemalan Association of Exporters (Agex-port), there were $202 million exported in January and February 2009, $84.2 million less than during the same period last year when the total was $286.2 million.