Amendment to the 2010 Tariff Preference Level (TPL) for Nicaragua Under the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR)

AGENCY:

Committee for the Implementation of Textile Agreements (CITA).

ACTION:

Amending the 2010 TPL for Nicaragua.

DATES:

Effective Date: July 6, 2010.

SUMMARY:

This notice reduces the 2010 TPL for Nicaragua to 99,238,862 square meters equivalent to account for the shortfall in meeting the one-to-one commitment for cotton and man-made fiber woven trousers exported from Nicaragua to the United States

FOR FURTHER INFORMATION CONTACT:

Richard Stetson, International Trade Specialist, Office of Textiles and Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

Authority: Annex 3.28 of the CAFTA-DR; Section 1634(a)(2) and (c)(2) of the Pension Protection Act of 2006 (Pub. L. 109-280); Presidential Proclamation 8111 of February 28, 2007.

Background

Annex 3.28 of the CAFTA-DR establishes a TPL for non-originating apparel goods of Nicaragua. Section 1634(a)(2) of the Pension Protection Act references the exchange of letters between the United States and Nicaragua, which establishes the one-to-one commitment for cotton and man-made fiber trousers. Section 1634(c)(2) of the Pension Protection Act authorizes the President to proclaim a reduction in the overall limit in the TPL if the President determines that Nicaragua has failed to comply with the one-to-one commitment. In Presidential Proclamation 8111, the President delegated to CITA the authority to determine whether Nicaragua had failed to comply with the one-to-one commitment and to reduce the overall limit in the TPL.

In an exchange of letters dated March 24 and 27, 2006, Nicaragua agreed that for each square meter equivalent of exports of cotton and man-made fiber woven trousers entered under the TPL, Nicaragua would export to the United States an equal amount of cotton and man-made fiber woven trousers made of U.S. formed fabric of U.S. formed yarn. This commitment for cotton woven trousers applies to the first 50 million square meters equivalent in 2009, the fourth year after the date of entry into force of the CAFTA-DR. Further, any shortfall in meeting this commitment that was not rectified by April 1 of the succeeding year would be applied against the TPL for the succeeding year. For 2009, the shortfall in meeting the one-to-one commitment is 761,138 square meters equivalent. This amount is being deducted from the 2010 TPL, resulting in a new TPL level for 2010 of 99,238,862 square meters equivalent.