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'Brazil accounts for bulk of Paraguayan apparel exports'
Sep '13
Paraguayan Deputy Minister of Industry Oscar Stark has said that nearly 7 out of 10 garments exported from the country are destined for Brazil, and the apparel sector of Paraguay has been reactivated due to growth in exports to the Latin American country.
According to a statement issued by the Network of Investment and Export (REDIEX), the Deputy Minister said although Argentina used to be the traditional buyer of Paraguayan apparel there have been obstacles faced in the Argentine market because of which the entrepreneurs are trying to explore other markets.
According to the Minister, the textile manufacturing industry registered a 10 percent growth in exports to the US this year compared to 2012.
Volume-wise, Paraguayan apparel exports growth also exceeded 25 percent and this could be attributed to the price rise and currency devaluation in Argentina and Brazil, he added.
Mr. Stark explained that several Brazilian textile companies are coming to Paraguay because of the various opportunities offered by the country mainly in terms of the Fiscal Incentives Act, the Maquila Law, and the law that provides legal guarantee for domestic and foreign investments.
According to industrial data, Brazil now leads the ranking in most apparel exports from the country with 67 percent of total apparel exports in Freight on Board (FOB) value of US$ 12.3 million, a position which was formerly held by Argentina, which now ranks second with 19.92 percent of apparel exports from the country in FOB value of US$ 3.6 million, and Uruguay ranks third with 11.23 percent of total apparel exports from Paraguay in FOB value of US$ 2 million.
According to the data, around 20,000 people in the country are directly dependent on the apparel sector, of which most are women or heads of the household.

Fibre2fashion News Desk - India

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