Changes in Central America Free-Trade Agreement to Happen Soon
A number of minor adjustments to the free-trade agreement between the United States and Central America will take effect on Oct. 13.
The changes correct technical errors incorporated when the accord went into effect in 2006.
The adjustments are:
• Currently, collars and cuffs on apparel made from “short-supply” fabric can come from outside the region. That exception is now extended to ribbed waistbands in combination with cuffs if they are of the same fabric.
• Elastomeric (spandex) yarns no longer have to come from the region if short-supply fabric is used. However, when clothing is made in part from a short-supply material and in part from regional fabric, any elastomeric yarns must come from the Central American region.
• The definition of regional sewing thread has been expanded to include single multifilament synthetic yarn. Previously, the trade pact did not require that monofilament thread be regional, which meant that thread from China and other areas outside the region could be used in apparel production and still receive duty-free status. Now all thread must be regional unless it is on a “short-supply” list.
• Visible lining fabrics, narrow elastic fabrics, sewing thread and pocket bag fabric can come from outside the free-trade region if it appears on the trade agreement’s “short-supply” list.—D.B.
