Background on the Textile Industry and Job Losses
The Mexican textile and apparel industry has suffered significant job losses due to the irregular practices of Asian competitors. According to Rafael Zaga Saba, president of the National Chamber of the Textile Industry (Canaintex), nearly 100,000 jobs have been lost in these sectors.
Government’s Tariff Proposal
The Mexican government’s proposal to increase tariffs by up to 50% on Chinese and other non-trade agreement countries is deemed “timely” by Canaintex to help the textile and apparel industry recover lost jobs. The strategy involves replacing imports of fabrics and clothing from Asian countries and promoting the “Made in Mexico” label.
Impact on the Industry
Zaga Saba explained in an interview with El Economista that most textile and apparel fractions in Mexico project a tariff of 35%, with some fabrics like wool at 50%. The industry aims to regain the jobs lost over the past two years and increase factory capacity from 60% to 100%, he stated.
Mexico’s Position in Global Markets
Canaintex plans to regain Mexico’s status as a global power in various products, such as jeans. Zaga Saba noted that one out of every three men’s trousers sold in the largest market, the United States, are made in Mexico. This product, from cotton to finished jeans, will be 100% national if the tariff increase is approved.
Tariff Implementation and Industry Commitment
Canaintex, in collaboration with the Secretary of Economy and Luis Rosendo, the subsecretary of Foreign Trade, is studying which tariff fractions can be replaced to meet industry demands. The textile industry has committed to investing $2.8 billion by 2030 to strengthen the domestic market with the “Made in Mexico” brand, address government purchases, and reinforce North American exports.
Addressing Illegal Practices
The textile industry previously reported that illegal activities had taken 60% of the formal market, diverting imported products with tax benefits for transformation, manufacturing, and re-exportation into the national market without paying taxes. Zaga Saba trusts that ad customs changes will limit smuggling and triangulation possibilities.
Key Questions and Answers
- What is the main issue faced by the Mexican textile industry? The industry has suffered job losses due to irregular practices by Asian competitors.
- How will the proposed tariffs help? The tariffs aim to replace imports and promote “Made in Mexico” products, helping the industry recover lost jobs.
- What is the target of the textile industry’s investment commitment? The industry plans to invest $2.8 billion by 2030 to strengthen the domestic market and reinforce North American exports.
- How will the industry address illegal practices? The textile industry trusts that customs changes will limit smuggling and triangulation possibilities.
