Central American Textile Council Says CAFTA-DR Apparel ROO Should Not Change
The Central America-Dominican Republic Apparel and Textile Council says that while job growth in its industry is "an important part of any solution addressing the root causes of irregular migration from Central America to the United States," it disagrees with some critics of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), who note that exports have not grown since the trade agreement has been in effect, and says a looser apparel rule of origin is needed (see 2104140047 and 2107210039).
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The council "stressed the importance of maintaining the rules of the game under the CAFTA-DR Agreement, including the 'yarn forward' rule of origin, which serves as the backbone that holds together the US-CAFTA-DR textile and apparel supply chain." The press release went on to say "The investment in recent years has been based on that premise – and there is substantial programmed private investment currently in the pipeline geared towards more verticalization of the supply chain and higher value added products. This trend risks being reversed -- affecting the creation of badly needed jobs -- if there is a change in the rules." However, they said the "short supply" loophole for the yarn forward rule could be reviewed. The textile council also said that there needs to be more foreign direct investment in Central America and the Dominican Republic.