Mexico's Textile Industry Faces Threat from China

Strategic Insights -

Mexico is confident that it will maintain its position as the second largest textile provider to the United States, despite the impending tariffs of 0% for China's textile products. The country has joined the list of nations seeking protection from the World Trade Organization (WTO) to delay the elimination of tariffs for two years, allowing its competitors to assess the impact of the new measure. Currently, the United States consumes $10 billion in fabrics, with $4 billion going to Mexico. The textile sector in Mexico employs 700,000 people, significantly fewer than China's 18 million workers.

Key Takeaways:

  • Mexico is concerned about its position in the US textile market as China's tariffs are set to drop to 0% in 2005.
  • Mexico has joined the list of countries seeking protection from the WTO to delay the elimination of tariffs for two years.
  • The US consumes $10 billion in fabrics annually, with $4 billion going to Mexico.
  • Mexico's textile sector employs 700,000 people, a figure lower than China's 18 million workers.
  • Rosendo Valles Costas, president of the National Textile Industry Chamber (Canaintex), has reported on the current state of the industry and the threat posed by China.
  • Mexico is seeking to give its textile competitors time to assess the impact of the new tariffs before they are implemented.

Statistics:

  • The US consumes $10 billion in fabrics annually.
  • $4 billion of these fabrics go to Mexico.
  • Mexico's textile sector employs 700,000 people.
  • China has 18 million workers in the textile sector.
  • The US tariffs on China's textile products are set to drop to 0% in 2005.

Sources:

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