Imports Of Denim Into USA From CAFTA For 2015- 2017

In this report , we did a detailed analysis of Import of Denim , which includes Denim Apparel for both Men and Women , into USA from CAFTA countries from the year 2015 up to second quarter of 2017. CAFTA refers to a Free trade agreement between US and some of its small neighboring countries like Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, as well as the Dominican Republic. Trade between CAFTA countries and US was about $28 billion in 2016 and touched about $22 billion in 2017 till September.
Under the bilateral free trade agreement, the CAFTA-DR, qualifying U.S. yarns and fabrics enter the CAFTA-DR region duty-free. This duty-free market access allows for increased export opportunities for U.S. textile and apparel manufacturers. In addition, because the Agreement has no termination date, investment in the textile and apparel sector in the region is expected to continually grow, promoting increased trade and increased exports to the CAFTA-DR market. Besides, the yarns and fabrics produced in these countries will also ensure duty free access in the US.  A relatively lesser known rule also allows Mexican denim fabrics upto 20 million sq mtr to be used under Cumulation rule. Besides, the SHORT SUPPLY PROCESS enables the body to decide if any of the fabrics can also be sourced from third countries in case of shortage of availability in these countries .

                                                                         Table of Contents

[private_special]

1. Imports Of All Denim Apparel

The imports of Denim Apparel to USA from CAFTA in the year 2015 was 20.70 million pcs , while the imports for 2016 was 13.38 million pcs which saw a drastic fall in imports of about 35 %. However, in 2017 the imports upto second quarter was 8.54 million pcs from which it can be assumed that the imports can go upto 17.00 – 18.00 million pcs at the end of year 2017 . The average price however in three years did not see much change and decreased about 5 % from 2015 to 2017.

a. Men’s / Boys Jeans

The imports of Men’s Jeans from CAFTA shows almost the same trend as seen in All denim apparel . While the imports for the year 2015 was 15.55 million pcs , the imports considerably fell about 38 % and came down to 9.68 million pcs in 2016. However the imports upto second quarter of 2017 was 6.10 million pcs from which it can be assumed that the import can go upto 12.20 million pcs at the end of year 2017. The price decreased about 2 % over the three years.

b. Women’s / Girl’s Jeans

The imports of women’s jeans was 5.15 million pcs into USA from CAFTA for the year 2015 , simlarly the imports in the year 2016 was 3.67 million pcs which saw a substantial decrease of about 30 % .The imports upto second quarter of 2017 was 2.44 million pcs from which it can be assumed that the imports can go upto 4.88 million pcs at the end of the year 2017.

After a bad 2016, we see some revival in 2017 in figures of exports of denim apparel from CAFTA countries to US. It may also be safely assumed that given China’s increasing prices, these countries may once again become attractive sourcing locations for US buyers. We are already witnessing a spurt in exports from Mexico to US as it becomes more competitive than China.

[/private_special]