Chinese clothing hits textile industry GDP – El Sol de México

The National textile industry fell 7.2 percent annual In the second quarter of the year, adding six consecutive quarters with declines, it accused Rafael Zagapresident of the National Chamber of the Textile Industry (Canaintex), who attributes this situation to the Mass arrival of products Chinese that are sold at lower costs,

“Last week there was another reduction in the data for the Gross domestic product (GDP) of the manufacturing sector; This is the sixth consecutive quarter of losses for the textile and clothing industry, which really worries us,” he told The Sun of Mexico.

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The businessman explained that several imported products enter the country at prices below production costs. In addition, the growing popularity of digital platforms such as Shein or Temuwhich evade national controls, aggravates the situation.

Zaga said that eight out of 10 items of clothing and other textile products enter the country in poor conditions. undervaluationthat is to say, below its cost of production.

“We are very concerned and busy with the issue. We see that we are inundated with Chinese merchandise in the country and we have to resolve it. As you know, there is a lot of illegality.”

According to data from the Bank of Mexico, in the first half of 2024, The import of textile products from China reached a value of 2,239 million dollars, which represents an increase of 13.21 percent compared to the same period of the previous year.

Zaga explained that this phenomenon is a consequence of the abuse of sectorial programs or of any type of merchandise that is sent at an undervalued price, which negatively impacts national businesses.

“It impacts us all. Any merchandise that does not pay any value added tax and no tariff leaves us on an uneven playing field.”

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This undervaluation has been going on in the country for years, he added, “we have not managed to advance as we would like and we are asking the head (of the National Customs Agency of Mexico) a meeting to close the door to this that is doing us so much harm.” Zaga assured that the national industry is capable of competing not only as an industry at a national level, but also at a global level.

“Mexico has a cost that is viable, we have the proximity to EUhe nearshoringand we have a local consumption with many millions of inhabitantsbut we ask for a level playing field, that’s the only thing we ask for.”

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