US Restores Duty-Free Treatment for CAFTA-DR Textiles

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WASHINGTON, D.C. — November 13, 2025 — The National Council of Textile Organizations (NCTO), representing the full range of U.S. textiles from fiber and yarn to finished sewn goods, has commended the administration’s announcement today regarding the reinstatement of duty-free treatment for eligible textile and apparel products from Guatemala and El Salvador, as part of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).

Kim Glas, President and CEO of the National Council of Textile Organizations, stated:

“NCTO and our industry leaders have long been pushing for the reinstatement of duty-free treatment for qualified textile and apparel goods for our CAFTA-DR partner countries. We welcome the administration’s announcements about restoring these benefits for Guatemala and El Salvador and continue to press for a resolution for the other trade partners including Honduras, the Dominican Republic, and Costa Rica, while acknowledging that the administration is conducting an extensive review under Section 301 of Nicaragua and their human rights violations under a separate track.

“We sincerely thank Rep. Richard Hudson (R-NC-09), Rep. David Rouzer (R-NC-07), and many members of the House Textile Caucus for their leadership and efforts in helping reinstate duty-free benefits for CAFTA-DR countries in support of the domestic textile chain. Today was one great step, and we want to thank President Trump, U.S. Trade Representative Ambassador Jamieson Greer, and the administration for this important decision.

“The CAFTA-DR region forms a vital co-production chain with the American textile supply chain, facilitating $11.3 billion in two-way trade in 2024 and supporting more than 470,000 U.S. workers in the domestic textile sector alone. However, since reciprocal tariffs were imposed on qualifying CAFTA-DR trade, U.S. textile and apparel imports from our free trade partner countries have declined 8 percent year to date in 2025 through July, while U.S. imports from top Asian suppliers have increased by double digits.

“The restoration of duty-free status for qualified goods from El Salvador and Guatemala is a critical first step for our collective industries. Restoring duty-free treatment for CAFTA-DR textiles is essential to bolster the U.S. textile supply chain and can help bring some stability to this critical sector. The U.S.-Western Hemisphere supply chains stand as a bulwark against China and other Asian countries. We look forward to working with the Trump administration and lawmakers to find a resolution that will restore duty-free treatment for qualified trade for this vital region.”

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