Unifi Inc., Greensboro, N.C., and U.S. trade representatives recently announced new legislation that provides a technical correction to the sewing thread provision in the United States-Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
The bill, which Unifi has worked on with government trade officials for the past five years, was passed in Congress on Aug. 3, and will take effect on Oct. 13.
The amended legislation will close a loophole that allowed for the use of non-originating sewing thread in the assembly of textiles and apparel under the CAFTA-DR. The technical modification clarifies that certain single-ply synthetic sewing thread is required to be produced in the United States or the CAFTA-DR region in order for goods to qualify for preferential tariff treatment.
The bill is significant to U.S. textile manufacturers because it will encourage greater use of U.S. inputs in the CAFTA-DR countries.
For more information, visit unifi.com. — L.M.
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