New legislation introduced in the US Senate would extend a tariff preference level, or TPL, on non-DR-CAFTA originating cotton, man made fibers, and some wool clothing from Nicaragua.
This legislation will extend the tariff through 2024. It is set to expire in 2014. It will maintain the tit-for-tat purchasing rule that requires Nicaragua to export one SME of woven trousers made of US fabric from US yarn for every SME of apparel exports filed using the TPL.
Nicaragua is the 12 largest apparel supplier to the US by value, and 11th largest by volume, according to ProNicaragua.