Clothing Industry in Mexico
Industrial Revolution Project (Clothing Industry in Mexico) Within the past decade, Mexico has emerged as a major exporting country for the textile industry. Over 17,000 companies now participate in the textile sector in Mexico alone, generating well over eight hundred thousand Jobs in 2001 (economic- Brussels). The overall textile Jobs make up approximately 5. 4 percent of total employment, and 20. 4 percent of manufacturing employment. Mexico geographic location also assists in their success. The country’s position between North and South America make Mexico a pivotal location for the exportation racket.
Mexico Free Trade Agreement with the Americas allow for certain countries for preferences, accounting for over half of the world’s GAP (economic-Brussels). Mexico established a Free Trade Agreement with Europe in 2000, which allowed for more economic cooperation between the two. Because Mexico and Europe could come to this agreement, both parties received economic benefits. The agreement also scheduled tariff elimination, which could allow European countries to compete with NONFAT in Mexico and give them [Europe] access to North and South American markets.
NONFAT (North American Free Trade Agreement) is the most important aspect to Mexico textile sector. In 2001, 74 percent of the overall textile exports were to NONFAT (economic). Mexico has been the main supplier of clothing in the United States since 1996. The Mexican government strongly supports the textile industry, introducing programs to strengthen competition of firms and setting up investing opportunities. The government faced modernization at the turn of the century, introducing technological solutions and allowing workers to develop technical skills.
This was leveled to promote innovation and persuade foreign and domestic investment (economic). In 2001, Mexico faced an issue surrounding NONFAT. The United States and Canada faced a drop in demand, and Mexico apparel exports had a percentage drop. The textile sector was still recovering from the trade legislation that granted Central and Caribbean nations tax breaks. These are the same tax breaks that were the catalyst for Mexican apparel boom, except labor in Central and Caribbean was much cheaper than Mexico (lattices). More recently, United States retailers are focusing in on Mexico youth.
The emergence of retailers in Mexico allow for relaxation of the previously heavy tariff on imported clothing. The growing popularity of the retailers is generally welcomed, as it would provide more Job opportunities (was). “The USA remains the primary recipient of Mexico apparel production. In general, apparel exports to the USA have been improving since the lows of 2009, but are still below general levels prior to 2008,” (inquisitorially). Mexican apparel makers currently employ 320,000, a steep drop from 750,000 in 2000 (2000 also being the year when Mexico was the top supplier of clothes to the
Clothing Industry in Mexico By unliterary organization and other (developed) nations reduced tariffs on the Chinese apparel. In 2013, Mexico was the fifth-largest supplier of apparel to the United States (was). The overall Mexican textile industry is strongly supported by not only its’ own government, but other countries. With efforts to improve technology within the market production and the trade agreements with North America and Europe, Mexico has a strong foundation and is able to easily compete with forces like China.