As recently as 2000 Mexico was the USA's largest clothing supplier. But since then it has fallen down the ranks as the phase-out and eventual elimination of quotas at the end of 2004 has enabled US buyers to source unlimited amounts from Asia at cheaper prices. To combat the declining competitiveness of the Mexican clothing industry, the Mexican government has set up a number of initiatives and is investing in state-of-the-art technology in order to encourage value added production in the sector. In this report, Alejandro Faes, a prominent figure in the Mexican clothing industry, discusses these initiatives and offers insight into the potential of alternative markets to the USA. He also discusses the major threats to the industry, including counterfeit trade, the phasing out of special tariffs against imports from China and the rise of Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) countries as alternative sourcing locations for US buyers.
| Table of Contents |
- Talking strategy: Mexico's clothing industry aims to move upmarket to remain competitive
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- Setting the scene
- Alejandro Faes's view
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