As apparel brands rethink their sourcing portfolio’s, Central America is getting increasing attention. The CAFTA-DR region – which includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua – offers proximity to the U.S., duty-free benefits, and a skilled, evolving manufacturing base. For U.S. brands aiming to reduce risk and increase responsiveness, the region provides a compelling sourcing alternative.

But for CAFTA-DR to live up to its potential, brands must navigate material shortages, regulatory hurdles, and tough global competition.