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    Panic In Central America $6 Billion Export Losses

    2014/7/8 17:05:00 15

    Spinning GarmentsExport VolumeLoss

    < p > recently, some < a href= "http://sjfzxm.com/news/index_z.asp" > experts < /a > said that with Vietnam's accession to the TPP strategic economic partnership agreement (TPP), the Central American region would lose 6 billion dollars in textile and clothing fields, causing panic in the countries of the region.

    Vietnam hopes to not be subject to rules of origin after accession to the TPP, and enjoy zero tariff preferential treatment immediately after the signing of the agreement.

    However, Central American countries and textile experts in the United States have said that this will be a disaster for the 5 Central American countries and the Republic of Dominica. They will be robbed of 25% of their textile and clothing export share.

    < /p >


    In 2013, Dominica signed a free trade agreement (DR-CAFTA) with Central America and the United States.

    Luis Estrada, Vestex general manager of Guatemala's largest textile and garment organization, said that in 2013, the members of the DR-CAFTA free trade agreement had exported $7 billion 800 million worth of clothing to the United States. However, if Vietnam was added to the TPP without being bound by the rules of origin of yarn, the export volume of these countries would be lost by US $1 billion 950 million per year, and we expect to lose nearly 6 billion euros in the first 3 years of the implementation of TPP.

    < /p >


    < p > < a href= "http://sjfzxm.com/news/index_z.asp" > because the member states of < /a > DR-CAFTA must comply with the rules of origin, their textiles can only be exported to the United States, and according to the current negotiation process, Vietnam will be able to purchase raw materials from other Asian countries, and then sell them to the United States through processing locally.

    < /p >


    < p > Vestex chairman Severino Matta said: "unfair treatment will reduce the competitiveness of the Central American countries. The United States provides the same treatment to the TPP countries as the member states of the DR-CAFTA agreement.

    Central American countries must strictly abide by the supply list and provide detailed procurement of raw materials as required. However, Vietnam wants to use a wider range of procurement lists.

    To this end, countries in Central America and the Caribbean need to be adjusted for a long time to avoid the impact of tariff relief in TPP countries on the export processing industry in Central America and the Caribbean. "

    Luis Estrada said: "if Vietnam joins TPP on these terms, then the loss to the Central American countries is enormous. We are working to make Vietnam and other countries join TPP under the same conditions, which is fairer."

    < /p >


    < p > at present, DR-CAFTA members have formed lobbying consortium with the textile team headed by the National Textile Organization Committee of the United States, asking the US Congress to put pressure on Vietnam to comply with the rules of origin of yarns, so as to limit the source of raw materials.

    These partners also expressed the hope that zero tariff treatment would be suspended.

    < /p >


    The relevant administrative departments of the United States are optimistic about this. P is expected to sign an agreement this year, and through communication, the participating countries will finally reach an agreement and win a win-win situation. TPP

    < /p >


    At the same time, Severino Matta said that the Central American countries are trying to develop niche market segments to avoid the positive competition with Vietnam. The Central American region should pay special attention to the development of high price, high value-added synthetic fibers and other clothing with more high-tech fabrics. P

    < /p >


    < p > it is reported that TPP now comprises 12 countries, including the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Portugal, Singapore and Vietnam.

    Vietnam is the second largest supplier of clothing after China.

    In the first half of 2014, Vietnam imported about $7 billion 700 million of textile raw materials, an increase of 20.6% over the same period last year.

    Among them, the import fabric was 4 billion 630 million US dollars, an increase of 17.5%; imports of other textile accessories 1 billion 500 million US dollars, an increase of 30.5%; imports of cotton 829 million US dollars, an increase of 43.7%; import fiber 749 million US dollars, an increase of 3.5%.

    According to Vitas statistics, imports of raw and auxiliary materials for Vietnam's textile production in the first 6 months were about $5 billion 900 million, up 23.3% from the same period last year.

    In 2014, the target of 13 billion ~135 billion dollars in export textile products will be completed. The raw materials and auxiliary materials will continue to increase in the second half of this year.

    Thus, Vietnam has a strong dependence on imported yarn and fabrics, and it is difficult to comply with the rules of origin.

    < /p >

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