Workshop on Rules of Origin under CAFTA-DR

USAID sponsored a workshop on the Rules of Origin-Trade Preference Levels to help Nicaraguan trade authorities and the private sector to comply with regulations under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).  The workshop, held on Feb. 5, was an opportunity for leading trade experts to explain to exporters, mainly textile manufactures, the agreement’s rules of origin, which contain customs procedures to identify products by their source.  About 80 participants attended the two and a half-day event, which received extensive coverage in the media.

 In opening remarks at the workshop, Carol Horning, USAID/Nicaragua Deputy Director, pointed out that under CAFTA-DR, Nicaragua can use 100 million square meters of fabric produced in other countries to manufacture textiles in its free trade zone factories that can be re-exported to other CAFTA-DR countries.  “It is the only country in Central America that has these trade preference levels.  The challenge is to take advantage of this opportunity,” said Ms. Horning.

USAID provided over $14.5 million dollars in 2006 to help Nicaraguan producers take advantage of the opportunities of CAFTA-DR through compliance with the agreements requirements and by increasing the country’s competitiveness.  This assistance is particularly aimed at helping small and medium size producers and businesses diversify their crops and products and meet quality standards of the international market.