To compensate for the loss of market which is expected once the Transpacific Agreement takes effect, the textile industry intends to resume FTA negotiations with the northern country.
A free trade agreement with Canada would allow the exporting textile companies to enter a market with high potential, since according to theexecutive director of Camtex, Patricia Figueroa, the country imports more than $14,000 million a year in textiles products and confection of synthetics such and towels, carpets, curtains and tablecloths. "
There is a growing demand for textiles and clothes manufacturing, but a new Law on Free Zones is needed in order to bring fresh investments to this sector.
The World Trade Organization (WTO) has determined, after two extensions, the country should, in 2015, replace the law that has been in force since 1998, which grants tax benefits such as a total and permanent exemption from taxes, among others.
The textile and apparel sector is expected to close the year with a 25% increase in exports.
Patricia Figueroa, executive director of the Chamber of the Textile, Clothing and Free Zones of El Salvador (CAMTEX), praised the strength of the sector, which despite lack of investments and reduction of staff, has succeeded in increasing exports.
Organized by the Chamber of Textile Industry in El Salvador, the event will be held on October 8th at the Crowne Plaza Hotel.
The first regional textile and clothing forum with discuss challenges facing the region against Asia´s accelerated growth in Asia.
Emilio Herrera, chief executive of the Salvadoran Chamber of Textiles and Apparel (CAMTEX) released some figures in an interview with ElSalvador.com "... from 2000 to 2009 Asia increased 1.5 times its exports, the CAFTA region exported in 2009 only 68.6 percent of what was exported in 2000, China multiplied 4.9 times its exports to the U.S. from 2000 to 2009 and El Salvador last year exported only 82.4 percent of what exported in 2000.”
Orders are increasing as the United States, main destination for Salvadoran textile exports, begins to recover.
Patricia Figueroa, executive director of CAMTEX (Textile and Free Zone Chamber of El Salvador), commented that an increase in U.S. orders has allowed company Fruit of the Loom to reactivate its Montecristo facility.
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