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Exports of textile to US surge 12.4%
Apr '08
According to data from the Department of Commerce of the United States, El Salvador registered an annual growth in export values in his bid textiles to the United States to 5.1% in 2007 and experienced a surge of 12.4% from January to February of this year in relation to same period last year.

China, by contrast (dominant country in this industry globally) for the first time since the abolition of quotas on textile trade, experienced a negative change in their clothing exports to the United States between the period January-February 2008 , said the Minister of Economy, Yolanda de Gavidia.

Some of the key factors that have diminished the relative competitiveness of the Asian country were: the appreciation of the yuan and the rapid increase in production costs, including costs and labor shortages, ironically factors given by the same economic boom, the official explained.

He added that in the case of El Salvador, following its dollarization, the country goes hand in hand with the depreciation of the dollar, which represents advantages in export.

Another point in favour, is the entry into force of the FTA with the United States (CAFTA-DR by its initials in English) and expanding accumulation of inputs (cloth) that give rise, especially from other partner countries, such as Mexico.

It is noteworthy that the total imports of garments have experienced a slight decline in recent months in the United States, coinciding with the economic slowdown that prevails in this country, but El Salvador has been positioned in market segments in which it have enabled a gradual recovery of its market share, considered the Minister for Gavidia.

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