Textile Export In Nicaragua Processing Export Area Will Continue To Grow 10%

Because of the abundant labour force and low wages in Nicaragua, the security law is relatively good compared with other Central American countries. The Nicaragua government also encourages foreign investment. The main manufacturing industries in Nicaragua include food, beverages, non-metallic products, refining, chemical, timber, tobacco and garments. The major manufacturing industries are mainly concentrated in processing export areas.

And Nicaragua was granted the WTO permission to develop the national standards according to the low level, so it still maintained the original reward of foreign investment. Processing export District conditions.

Nicaragua is also one of the countries where the WTO allowed only 1000 of the national income in January 1, 2003 to provide tax concessions to foreign investors.

Fourth other sessions WTO According to the special and differential treatment clauses of the low development countries, the Duras ministerial conference also allows Nicaragua to maintain the existence of the processing export area after 2008, while the other middle income countries in the Middle East need to modify the processing export zone decrees and conduct transformation so as not to form export subsidies, which will help Nicaragua continue to attract foreign investment.

In order to encourage investment in the development of industrial zones, the government of Nicaragua offers preferential terms including tax deduction and exemption. Raw materials, machinery and equipment, spare parts, vehicles, samples, moulds and fittings are duty-free imports, real estate transfer and capital gains tax exemption, and tax exemption from direct tax, consumption tax and local tax is exempt from tax exemption.

The Nicaragua processing export area was initially established, with only a few home systems in the region. Cause clothes In November 1991, the Taiwan enterprises were invested in the Nigerian processing area because of the executive order issued by the president of the Republic of Niger, Chamorro. With the recovery of international prosperity, manufacturers in the processing area have signs of reflux and expansion.

Since 2010, the Istmo Textil en Masaya of Brazil footwear factory has been formally produced in Nigeria, and Demotech has been producing medical sutures, showing signs of recovery in Nicaragua processing zone. In 2010, there were 89 thousand and 927 employees in the processing area, exceeding the total number of 88 thousand and 629 employees employed in January 2008.

On the other hand, according to the report of the Nicaragua textile and garment industry association, the total value of textile export in Nicaragua processing zone in 2010 exceeded the high of 934 million US dollars in 2008, a record of 1 billion 18 million US dollars, and 14% growth over 2009.

In terms of export volume, exports of 362 million square meters of textiles in 2010 were 17.7% higher than in 2009. The main export items include cotton tops, jackets, coats, shirts and trousers.

As global market demand has picked up slightly, some textile producers in the Nicaragua processing area have expanded their production scale and added 3000 employees. It is estimated that the export of textile processing industry in 2011 will grow by 10% to 1 billion 100 million US dollars and the number of employed staff is expected to increase from 65000 to 70000.