Mexico’$ 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 employs 639,000 workers directly,and provides livelihoods for many more people indirectly in support activities.In addition,a large number of operatives work in clandestine workshops which do not register their employees.In 2018 Mexican textile and clothing exports were valued at US$6.8 bn.However,this was down by 39% compared with the US$11.2 bn achieved in 2000,after six years of rapid growth following the implementation of the North American Free Trade Agreement (Nafta)in 1994.Furthermore,textile and clothing exports in 2018 fell short of textile and clothing imports by US$4.2 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 2018 as much as 85% of Mexico's textile and clothing exports went to the USA.But Mexico's textile and clothing exporters have suffered in the US market as US imports from China have grown.Moreover,textile and clothing imports from China have become a significant force in Mexico's domestic market,having accounted for almost 30% of Mexican textile and clothing imports from all sources in 2018.Even so,Mexico's textile and clothing industry can lookforward to a bright future if opportunities are seized.At the macro level,Mexico is the second largest economy in Central and South America,thanks in no small part to government policies which favour an open economy and prominent roles for the private sector and foreign investors.Meanwhile,the position of Mexico in the US import market has become slightly more stable following the signing of the United States-Mexico-Canada Agreement (USMCA).The agreement is expected to enter into force in 2020 and will replace Nafta.The industry is also seeking to expand its reach in other markets-including EU countries and the UK.In addition,there is scope for higher sales in the domestic market,given that Mexico has a population of 129 mn which is becoming increasingly prosperous and given also that younger age groups which tend to spend more than their older counterparts account for a large proportion of this total.
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