The National Council of Textile Organizations (NCTO) has welcomed the announcement of a reciprocal trade agreement between the United States and Guatemala, calling it a timely move to reinforce the U.S.–Western Hemisphere textile and apparel supply chain.
According to Kim Glas, President and CEO of NCTO, the agreement removes reciprocal tariffs and provides preferential treatment for qualifying textile and apparel products from Guatemala under the Dominican Republic–Central America–United States Free Trade Agreement.
Why it matters
- Guatemala is a key CAFTA-DR partner, accounting for around $2 billion in two-way textile and apparel trade with the U.S.
- The broader CAFTA-DR co-production network generated $11.3 billion in two-way trade in 2024, supporting more than 470,000 U.S. textile jobs.
- The agreement follows closely after a similar deal with El Salvador, signaling a broader push to fortify near-shore textile manufacturing.
Strategic context
NCTO emphasized that the U.S.–Western Hemisphere textile and apparel supply chain acts as a strategic alternative to China and other Asian producers, offering speed-to-market, regional integration, and supply-chain resilience. The agreement is seen as reinforcing this model at a time of heightened geopolitical and trade uncertainty.
Industry outlook
NCTO expressed appreciation to President Donald Trump and U.S. Trade Representative Jamieson Greer for concluding the agreement and reiterated its willingness to collaborate further with the administration to strengthen and expand regional textile partnerships.
Bottom line:
The U.S.–Guatemala reciprocal trade agreement deepens CAFTA-DR integration, enhances tariff certainty, and reinforces the Western Hemisphere as a cornerstone of the U.S. textile and apparel supply chain.
