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Peru's garment exports to Mexico to double this year

06 Feb '12
2 min read

The coming into force of the free trade agreement (FTA) between Peru and Mexico would double Peru's garment exports to the North American country, the Textile Committee of Peru's National Society of Industries has said.

Henry Falcone, President of the Textile Committee, said, the FTA would benefit Peru's entire textile value chain from agriculture and chemical industry, to fabrics and apparels.

In 2010, Peru exported textiles and clothing to Mexico worth US$ 18 million, which increased to US$ 26 million last year, representing a 44 percent year-on-year growth.

The latest agreement between the two countries is expected to double the exports this year as Mexico is a significant market for Peruvian textile and clothing exports, including cotton, wool, synthetic and knitted items.

Mr. Falcone said that most of the textile and garment export items of Peru have come under the liberalized tariffs from the very day the FTA came into effect.

Prior to FTA, Peruvian textile items were subjected to an average duty of 15 percent and the custom tariff on apparels was at 30 percent.

Now, Peruvian textile and clothing items can be exported to Mexico without paying any duty, except for 66 items that are considered sensitive, tariffs on which would be gradually removed over a period of five years, Mr. Falcone said.

He revealed that the FTA has rules of origin clause which bars the use of yarn from countries like India in the production of fabrics, to be eligible for duty-free entry into Mexico. The condition that only products made using Peruvian yarn would qualify for zero-duty facility under FTA is very important as Peru imports high volume of yarn from India.

The FTA, at the same time, allows Peruvian garment manufacturers to use certain types of elastomeric and other yarns from the US and Brazil for use in the garments to avail the zero-duty facility.

Fibre2fashion News Desk - India

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