Mexican textile and apparel makers in row over CAFTA membership

Mexico's textile and apparel manufactures are caught in a bitter row over the benefits that the country's possible entry into the Central American Free Trade Agreement (CAFTA-DR) may bring to their respective trades.

Mexico is currently reviewing CAFTA-DR membership for all its industries as a way to expand trade ties with its Central American neighbors. The country has begun negotiations and hopes to reach a deal in the coming months.

As members of CAFTA, apparel makers in Central America and the Dominican Republic will be able to make clothes with Mexican fabrics (through the accumulation provision) and export them to the U.S. Duty free, given they don't surpass certain limits.

While Mexican textile chamber welcomes the boost of the country fabric exports from 100mn tones in the first year of Mexico's membership and to 200mn tons in the second year, the apparel trade chamber says the membership will kill thousands of jobs in the apparel sector. And is scared that Mexico as apparel manufacturing sees to excised and production will be transferred to Central American producers.