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MEXICO: Drop in illegal clothing imports

MEXICO: Drop in illegal clothing imports

MEXICO CITY: The news that the illegal imports have declined has brought some relief to the apparel industry of Mexico. The garment sector has acknowledged that there was a 40% drop in illegal imports in the first four months of the year, a period in which some 8,000 jobs were created.

Tony Kuri, president of National Chamber of the Clothing Industry (CNIV), commented that in the first three months of 2004, the GDP of the sector did not shrink, which was the first time for the last three years.

Sales in the domestic clothing industry rose 6% in the first quarter and for the first time in three years imports actually fell, sliding 11% year-on-year.

The government may support the textile and clothing industries in their case before the World Trade Organization (WTO) to postpone the application of the Multi-Fiber Agreement until 2007, instead of January 2005, said Rocio Ruiz, undersecretary of Industry at the Secretariat of Economy. Ruiz said that the agreement "will cause a drop in exports... or Mexican producers will have to make extra efforts to remain in the US market."

June 24, 2004