The U.S. will implement two provisions in the Central American Free Trade Agreement that pertain to materials sourced in Mexico. The Office of the U.S. Trade Representative said Tuesday that so-called textile cumulation and a pocketing amendment will be implemented on Aug. 15. Under the cumulation provision, a limited amount of woven apparel goods produced in the CAFTA countries that use Mexican or Canadian materials can enter the U.S. duty free. A reciprocal decision granting duty free status to goods entering Mexico but made in the CAFTA countries containing U.S. materials is expected to go into effect the same day. Under the pocketing amendment, apparel with pockets must use yarn formed in the signatory countries — the U.S., Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic.
This story first appeared in the July 23, 2008 issue of WWD. Subscribe Today.