Increasing by 5% year-over-year due to strong demand for U.S. agricultural and manufactured goods.
Special Rates
Preferential Rate under DR-CAFTA
0%
Applicable to qualifying goods under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA); must meet rules of origin and documentation requirements as per U.S. Note 21(j).
Additional Information
No additional information available.
Last updated: 1 year ago
News and Updates
Recent News
U.S. Extends Tariff Benefits for Nicaraguan Textile Imports Under CAFTA-DR
The United States has renewed specific tariff preferences for Nicaraguan textile and apparel products under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), as provided for in subheadings enumerated in U.S. note 21(j). This extension aims to bolster trade relations despite political tensions.
October 15, 2023
Impact: This renewal is expected to maintain the flow of textile imports from Nicaragua, supporting U.S. apparel manufacturers reliant on these inputs while providing economic stability to Nicaraguan exporters.
Nicaraguan Apparel Exports Face Scrutiny Over Labor Concerns
U.S. officials are reviewing labor practices in Nicaragua's apparel sector, which benefits from tariff provisions under U.S. note 21(j). Concerns over worker rights could influence future trade benefits.
September 20, 2023
Impact: Potential restrictions or sanctions could disrupt the tariff-free status of Nicaraguan apparel, affecting bilateral trade volumes and increasing costs for U.S. importers.
Trade Volume of Nicaraguan Textiles to U.S. Increases Under CAFTA-DR Provisions
Recent data shows a 12% increase in Nicaraguan textile exports to the U.S. under subheadings covered by U.S. note 21(j), driven by demand for cost-effective apparel inputs.
August 5, 2023
Impact: The surge in exports strengthens economic ties but raises concerns about over-reliance on tariff preferences, potentially pressuring U.S. policymakers to reassess quotas or conditions.
Policy Updates
Renewal of Tariff Rate Quota for Nicaraguan Apparel
The U.S. Trade Representative announced the continuation of the tariff rate quota for specific Nicaraguan apparel items under U.S. note 21(j) for another year, ensuring duty-free access for qualifying goods up to a specified limit under CAFTA-DR.
Date: October 1, 2023
U.S. Review of CAFTA-DR Compliance for Nicaragua
The U.S. government initiated a compliance review of Nicaragua's adherence to CAFTA-DR labor and environmental standards, which could impact tariff benefits under subheadings in U.S. note 21(j) if violations are confirmed.
