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Mexico gearing up for entry of Chinese garments
24
Nov '11
Mexico is gearing up for the inevitable entry of Chinese garments into the country, as the anti-dumping duties that protect the domestic sector are set to end on December 11, 2011.

Over the last few years, Mexico has decreased protectionist duties and under the World Trade Organization (WTO) obligations, it has to allow direct entry of Chinese goods into the country.

In fact, after having imposed protectionist measures against low-priced Chinese imports for long, Mexico was the last country to accept China's membership in the WTO in 2001.

With the expiry of safeguard measures next month, Chinese apparel and other items would directly compete with domestic products in the Mexican retail market.

So far, China has been exporting to Mexico through third-countries. It is estimated that around 90 percent of the 111 million apparels that entered Mexico from Malaysia were originally from China.

While it would be interesting to see how Mexican companies fare against the expected flooding of Chinese goods, the appreciation of Chinese yuan in recent times, along with the Mexican peso losing its value against the dollar, is sure to benefit Mexico.

Fibre2fashion News Desk - India

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