Mexico's Footwear Industry on Brink of Collapse

Strategic Insights -

Mexico's national footwear industry is facing collapse due to a combination of factors, including the government's lack of support, increased imports, and unfair trade practices from China. According to Santiago Pazos, president of the National Footwear Industry Chamber (Canaical), the industry is on the verge of disappearing in the next few years, resulting in significant job losses, investment, and business closures. The industry has been struggling with high import levels, with 50 million shoes expected to be brought into the country this year alone, compared to 35 million in 2003. Pazos estimates that an additional 5 million pairs are being smuggled in, but warns that this number could be much higher.

Key Takeaways:

  • The national footwear industry in Mexico is at risk of collapse due to a lack of government support, increased imports, and unfair trade practices from China.
  • Santiago Pazos, president of Canaical, warns that the industry will disappear in the next few years if measures are not taken to address these issues.
  • Legal imports of footwear reached 35 million pairs in 2003, but are expected to reach 50 million in 2004.
  • An estimated 5 million pairs of shoes are believed to be smuggled into the country each year, although this number could be higher.
  • The government has been asked to consider contraband a serious crime, but currently it is considered a minor offense.
  • The industry is facing significant job losses, investment, and business closures if the situation is not addressed.
  • The lack of government support has frustrated industry leaders, who feel that their concerns are not being taken seriously.
  • Canaical has presented several plans of action to the government in an effort to spark the industry's development, but so far, no action has been taken.

Statistics:

  • 35 million: number of pairs of shoes brought into Mexico as legal imports in 2003 (Source: El Economista)
  • 50 million: number of pairs of shoes expected to be brought into Mexico as imports in 2004 (Source: El Economista)
  • 5 million: estimated number of pairs of shoes smuggled into Mexico each year (Source: Santiago Pazos, Canaical)
  • 2003: year in which 35 million pairs of shoes were brought into Mexico as legal imports (Source: El Economista)
  • 2004: year in which 50 million pairs of shoes are expected to be brought into Mexico as imports (Source: El Economista)

Sources:

  • El Economista
  • COMTEX
  • Canaical
  • Santiago Pazos, president of Canaical
  • Internet Securities, Inc.