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Mexico Seeks WTO Postponement of Textile Quota Elimination

Strategic Insights

— 1 min read

Mexico's textile industry is advocating for the World Trade Organization (WTO) to delay the abolition of textile quotas, citing the need for a more gradual transition. The industry, represented by the National Chamber of the Textile Industry (Canaintex), has signed the Istanbul Declaration with 26 other nations, calling for the elimination of quotas to be postponed to December 2007 from the originally planned January 2005. This move aims to allow for a more feasible adjustment period for domestic producers.

Key Takeaways:

  • Mexico's textile industry is seeking a two-year postponement of the WTO's plan to eliminate textile quotas, which is set to take effect in January 2005.
  • The industry has signed the Istanbul Declaration with 26 other nations, calling for the elimination of quotas to be postponed to December 2007.
  • The National Chamber of the Textile Industry (Canaintex) is leading the effort, with Rosendo Valles Costa, its president, stating that this is a crucial proposal for the development of the domestic textile sector.
  • Mexican textile industry representatives will meet with other WTO member nations in Brussels, Belgium, in the second half of June to discuss strategy and present a combined case to the WTO.
  • The industry is also seeking to maintain compensatory duties on imports of textiles and apparel.

Statistics:

  • The WTO's current plan to eliminate textile quotas is set to take effect in January 2005.
  • 40 years ago, the WTO members agreed to place limits on imports of main textile and clothing products, which will be abolished in January 2005.
  • 26 countries, including Mexico, have signed the Istanbul Declaration, calling for the elimination of quotas to be postponed to December 2007.
  • The Mexican textile and clothing firms have been hit hard by the current high-value-dollar market, which has increased labour costs and reduced competitiveness.
  • Internet Securities, Inc. has provided translation services for this abstract, and makes no representation or warranty regarding its accuracy.

Sources:

  • El Universal
  • Corporate Mexico by Internet Securities, Inc.
  • COMTEX (http://www.comtexnews.com)

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