The US is investigating Nicaragua over alleged attacks on labour rights, however the US apparel sector has urged the US Government to proceed with caution as the region plays an important role in its textile and apparel supply chain.
December 11, 2024
The Office of the United States Trade Representative (USTR), under the leadership of Katherine Tai, has commenced a Section 301 investigation scrutinising the conduct, policies, and practices of Nicaragua.
This inquiry, rooted in the Trade Act of 1974’s Section 301 provisions, reflects the US’s apprehension over Nicaragua’s alleged ongoing oppressive actions against labour and human rights, as well as its so-called disregard for legal principles. ...
The United States Fashion Industry Association (USFIA)’s president Julia K. Hughes added: “There is no excuse for these violations by US trading partners. As the investigation proceeds, we encourage the Biden Administration and the incoming Trump Administration to carefully consider the appropriate punishment for Nicaragua.”
However, she was also keen to point out that Nicaragua plays an important role in the Western Hemisphere textile and apparel supply chain and stated: “As we look ahead to possible penalties, we support the calls for the penalties to focus on those directly responsible for the abuses.”
Hughes highlighted that this is an “unusual” 301 investigation since Nicaragua is a free trade agreement partner: “As a CAFTA partner and a critical element in the expanding sourcing opportunities in the Western Hemisphere, we hope that the 301 case will not destabilise the integration of US and CAFTA textile and apparel manufacturers and US brands and retailers. We look forward to participating in the 301 public comment process.”