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Below you will learn about the importance of the textile industry in Mexico and its economic and social impact.
The textile industry belongs to the manufacturing industry, which is dedicated to the production of fibers, yarns, fabrics, and their derivatives. Textiles can be natural or synthetic and are mostly used for the production of sectors such as apparel, automotive, and aeronautics.
Mexico is characterized as being a nation where raw materials, agricultural products, and goods are a synonym for quality; the textile industry has these characteristics and stands out worldwide.
History of the Textile Industry in Mexico
Origins in Mexico
In Mexico, this industry has always been considered of utmost importance to the national economy and culture. The textile origins date back to before the Spanish conquest, the Aztecs handcrafted textiles, spinning and working cotton to create fine attire of thick fabrics and interwoven feathers.
The origin of the Mexican textile industry began to be recognized in 1837 when the industrial revolution took place and the first modern spinning mills were created, which helped to accelerate textile production.
Textile Industry in Mexico
The textile and apparel industry plays a very important role in the Mexican economy, due to the large amount of employment it generates, as well as the direct contribution to the country’s economy.
Thanks to this industry, Mexico is positioned as one of the leaders in textiles, synthetic fibers are one of the most important products within the industry and place Mexico as the fifth largest textile supplier worldwide.
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Main Textile Products in Mexico
Among the main products of the Mexican textile industry are cotton denim fabrics, which are the most produced in Mexico, according to INEGI, they represent 11% of Mexican textile production.
Other products that are important for the textile industry are.
- Fabrics are made of a mixture of soft fibers, mainly synthetic fibers.
- Raffia sack fabrics.
- Spun yarns of blended soft fibers, mainly artificial fibers.
- Manufacture of non-woven fabrics for industrial use.
- Manufacture of coated plastic fabrics with textile backing.
These 6 products alone account for 28.3% of the textile industry’s production.
Textile Production Locations in Mexico
Three states in Mexico are out for their high textile production capacity.
- State of Mexico
- Puebla
- Hidalgo
According to INEGI, these three states alone account for 51.9% of the total textile production in Mexico.
In the aforementioned states, there are municipalities whose economic activity is based on textiles, such as Tepeji del Rio de Ocampo in the state of Hidalgo, which produces 10.8% of the national production.
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Textile Industry Economy in Mexico
Imports and exports
The main trading partner for textile products is the United States with 86.8% of total exports, and the second-largest importer is Canada, to which Mexico exported 2.1% of total production. With these facts, we realize the importance of NAFTA now USMCA.
According to statistics provided by INEGI and CANAINTEX (National Chamber of the Mexican Textile Industry), Mexico in recent years has shown a trade balance deficit of 4,154 million dollars.
Different from the textile industry, the apparel industry shows a trade surplus. Mexico’s largest suppliers are the United States of America (36.2%) and China (29.3%).
USMCA | T-MEC | CUSMA
On July 1, 2020, the USMCA comes into force and represents a great opportunity for the textile industry, since it allows free trade for all products manufactured in Mexico with products from member countries.
Other initiatives within the agreement between the northern countries are.
- Rules of origin are maintained
- The inclusion of handcrafted goods to receive preferential tariff treatment.
- Strengthened surveillance of rules of origin.
- Increased customs cooperation
National Impact | Textile Industry in Mexico
The GDP of both industries (Textile and Apparel) represented 3.2% of the national GDP. Both industries rank tenth among the most important manufacturing economic activities.
The destination of textile and apparel products is divided into two; intermediate demand (integrates the productive process of other industries) and final demand (mainly exports and final consumers). Intermediate demand represents 58.9% and 41.1% corresponds to final demand.
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Mexico’s Apparel Industry
The apparel industry maintains a direct relationship with the textile industry since the products of this industry are mostly manufactured with textiles. These products are used as inputs for other industries or the creation of clothing.
The apparel industry is even larger than the textile industry and combined they form one of the most relevant activities in terms of their contribution to GDP.
The most manufactured product in the apparel industry according to INEGI’s Collection of sectorial and regional studies published in 2020 was men’s pants, representing 13.2% of the total production of this industry.
Completing the list of the main products coming from the apparel industry is.
- Knitted fabric men’s T-shirts
- Knitted fabric T-shirts
- Women’s pants
- Men’s suits
- Women’s blouses.
These five products added to men’s pants represent 36.8% of the apparel industry.
Conclusion | Textile Industry in Mexico
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