It is expected that textile trade between these two countries will provide many entrepreneurial investment possibilities in the future, and the available information supports this expectation.
Statistics reflect that Mexico has been one of the chief textile exporters to the United States since the institution of NAFTA, the North American Free Trade Agreement. By 1996, Mexico was exporting significantly more textiles to the United States than was China. In fact, exports of textiles and fibers from the United States to Mexico have increased by approximately 25 percent per year since 1986. In economic terms, Mexico exported approximately US$2.900 million to the United States from January 2004 to May 2004, which represented a 25 percent increase in exports over that time period (Infomat, 2005).
Many analysts predicted that Mexico's textile industry would take a severe blow when trade quotas were eliminated in 2005 as China was expected to take the largest share of this international market. China has indeed moved quickly, and there are challenges pending to the removal of quotas, but Mexico has not faced the downturn that many predicted. Instead, the country has maintained essentially the same volume of exports to the United States as it maintained prior to the expiration of the trade quota agreement. While Mexico's textile industry overall has seen a decline since the quota was eliminated, the country has managed to hold its own by taking advantage of the market demand for high-value garments in the United States. At present, Mexico offers many economic incentives for investors who wish to take advantage of this market. Three main companies dominate the actual production of textiles, but the production of high-end garments is a field that is still wide open. Akra, Invista, and Cydsa have forced more than 380 Mexican textile companies out of business within the past four years (Barday, 2005), and it is apparent that investors in t...
Global Industry of Textile. (1969, December 31). In LotsofEssays.com. Retrieved 07:04, August 30, 2016, from http://www.collegetermpapers.com/viewpaper/1303389754.html