Mexico's textile and clothing industry covers the entire production chain—from cotton growing and man-made fibre production to the manufacture of yarn, fabric, finished clothing and accessories. The industry is also important to the Mexican economy. In 2013 the textile industry accounted for 1.3% of Mexico's gross domestic product (GDP) while the clothing industry represented 2.5%. The textile and clothing industry employed almost 415,000 workers directly during the year, of whom an estimated 26% were employed in textiles and 74% in clothing. However, it provides livelihoods for many more people in support activities. In addition, a large number of operatives work in clandestine workshops which do not register their employees. In 2013 textile and clothing exports were valued at US$6.42 bn. But this was down by 43% compared with the US$11.20 bn achieved in 2000—after six years of rapid growth following the implementation of the North American Free Trade Agreement (Nafta) in 1994. Furthermore, exports in 2013 fell short of imports by US$2.24 bn, reflecting the industry's heavy reliance on imported raw materials. The industry also relies heavily on the USA as a market for its exports. In 2013 the USA took 75.4% of Mexico's textile exports and 93.7% of its clothing exports. But Mexico's textile and clothing exporters have suffered in the US market as US imports from China have grown. Moreover, clothing imports from China have become a significant force in Mexico's domestic market, having grown by 558.8% to US$975 mn between 2008 and 2013. In 2013 alone, Mexican clothing imports from China were up by 42.1% compared with the previous year.
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