Overseas media report that the trade pact signed by US and six Latin America left bad impression to traders because it hamper the trade between US and Central America.
CAFTA be authorized by Central America become an obstacle. Costarica, Dominica and Guatemala have not authorized CAFTA formally ,so the tariff for the textile imported from these countries reach 30%.
On the other side, Salvador, Honduras and Nigaragua have already approve agreement , so they can export goods to US without tariff.
Besides, the goods including thread, button or other material from third country, even exported from countries approveed CAFTA will also be imposed tariff.
Textile Company has already faced the fierce competition of low price goods from China and Asia. At the middle terms of 2005, China s account for 32% of US textile & fashion share, bigger than any other countries.
When US sign three-year agreement with China, US industry break through and slow imports of goods ranging from baby socks to swimwear and restricting to certain others, such as thread and yarn.
The supporter of CAFTA thinks that the agreement offers the chance to industry development and keep textile jobs in US textile industry.
US Textile Organization Committee believe that by integrating textile and apparel production they can produce garments competitively priced against Chinese goods.
