How do CAFTA-DR and the yarn-forward rule benefit Guatemalan apparel, and what happened to the US reciprocal tariff?

According to OTEXA figures cited by FASH455 (Sheng Lu), in the year ending June 2025 89.17 % of Guatemala's apparel exports to the United States entered under the free-trade-agreement preferences and, of that total,… 79.69 % qualified under the yarn-forward rule (garments made with yarn from the United States or a Central American country). In the Agreement on Reciprocal Trade signed on 30 January 2026, the United States undertakes not to apply the additional duty of Executive Order 14257 to Schedule 2 goods (textiles and apparel) that qualify as originating under the CAFTA-DR rules of origin; for all other goods of Guatemala the additional rate will be no higher than 10 percent.