Mexico and the US are major trade partners. Of late, Mexico’s economy is witnessing growth with its unemployment and debt constantly declining. Mexico’s geographic location between North and South America is beneficial for exports, which has made it the seventh largest export market in the world and the most important one in Latin America. The economy of Mexico is the 15th largest in the world in nominal terms and the 11th largest by purchasing power parity, as per the data provides by International Monetary Fund.
The Mexican textile industry has a long history of making fibers, cloth and other textile goods since at least 1400 BCE. The textile industry remains important to the economy of Mexico although it has suffered setback due to competition by cheaper goods produced in countries such as China, India and Vietnam. The proactive government policies of the country have also supported the industry in a big way. Mexico offers an ideal investment location for companies active in the clothing and textile sectors. It has a highly skilled and economically competitive workforce and excellent access to world-class inputs and technologies. Moreover, its geographical location and extended network of Free Trade Agreements (FTAs) make it a strategic hub from which to export to major markets in North and South America, the EU, EFTA and beyond.
While Mexico imports cotton products majorly from USA and India, textile and apparel goods manufactured in the United States enter Mexico duty free under the North American Free Trade Agreement (NAFTA).
