Apparel made from U.S. yarn or cloth can enter the United States duty-free. Footwear and watches, previously excluded, now can enter duty-free also. However, the light manufacturing investor must also overcome obstacles. Worker productivity is generally lower than in surrounding nations such as El Salvador and Honduras. The apparel assembly industry is more established there.
Workers have more experience in factory employment.
The rate of absenteeism is higher than in the United States, but near par for the region. Severance pay requirements, of one month compensation for each year worked up to five, create a higher level of turnover than employers would like. In the last couple of years, U.S. and international labor activists have made allegations of union-busting and illegal working conditions. This has led many major U.S. retailers to carefully audit their contract suppliers. Most of these charges have been disproved and, in most cases where abuses existed, corrective action has been taken.