The preferential treatment of TPL (Tariff Preference Level), which is issued annually to Nicaragua textile producers, will expire at the end of 2014. Although the US Congress is still in the pending trial for extending the TPL case, it is judged that the case is bound to not be considered before December 31st, due to the fact that there are too many confrontations and major issues in the US.

The Nigerian industry and related associations are worried that the textile industry will face a negative impact.

According to Nigeria

Dean Garcia, executive director of the garment industry association (Anitec), pointed out that the Nicaragua textile duty free export quota (TPL) could not be successfully postponed at the end of 2014. The textile factories that had invested in factories in Nigeria in 2015 would not be able to enjoy the cheap materials imported from the third countries, and the sale of the finished products to the United States by NYC will result in the unemployment of 10 thousand to 15 thousand textile workers in the processing area.

The textile and Garment Association believes that if the United States Congress can make a decision on the TPL case in the next 6 to 12 months, the unemployed will be reinstated by 2016.

At present, 30% of the textile producers who manufacture international famous brand garments in Nigeria are entitled to TPL preferential treatment. If some garments are made to the costumes of Costa Rica, which belong to the United States and the Central American and Dominican free trade agreement (CAFTA) countries, the tax exemption and export to the United States will not be affected.

however

After the expiry of the TPL, which will expire at the end of 2014, will it still be possible for the textile operators to invest in Nigeria to maintain their operations? To remain in Nigeria or to move to other regions to set up factories will be one of the important factors that will affect the future economic development of Nigeria.