By Alan Field

Thus, a cotton polo shirt made in Nicaragua from fabric made in South Korea, for example, can still qualify for duty-free status when exported to the U.S., said Julia Hughes, president of the U.S. Fashion Industry Association. The reason, she explained: Nicaragua is the region’s smallest manufacturer in the textile and apparel sector, and companies have no vertical integration, so the country needs to be able to have greater flexibility to use inputs from other countries.

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