In an industry fair to be held in May in Guatemala, organizers expect to generate around $700 million in trade deals.
The Apparel Sourcing Show will be held in Guatemala on the days from the 15th to the 17th of next month. This costume and textiles fair will be backed by buyers and suppliers from Brazil, Spain, Turkey, the USA and China.
This is good news for Central American textile manufacturers. We will have to wait and see what other protectionist measures will be implemented by President Trump.
The possibility that the United States buys textiles from Vietnam at lower prices than those paid by textile manufacturers in Central America seems to have now disappeared, however, in order to measure the true impact of the Trump protectionist policy on trade between US business and the region we will have to wait to see what other decisions on international trade deals are take by the new administration.
If the United States withdraws from the Transpacific Agreement, there will be less risk of competition from Asian countries for the Central American textile industry.
If the US does eventually abandon the Trans-Pacific Partnership Agreement (TPP), as promised by President-elect Donald Trump, the Central American textile industry could benefit from the elimination of the possibility that the US, its main market, will buy textiles from Vietnam at lower prices.Since the start of negotiations for the TPP, the Central American textile industry has tried to negotiate bilaterally with the US in order to minimize the negative effects that the TPP could have on the industry in the region.
Coffee, textiles, clothing accessories and leather are some of the products that have opportunities for being sold in the European country.
In addition to traditional products such as coffee, textiles, leather and accessories, representatives of the Franco-Nicaraguan Chamber of Commerce identified opportunities in the French market for other non-traditional export products such as chia.In 2015 the country exported $32 million worth to the European country and imported goods worth $110 million, according to central bank figures.
On July 12 entrepreneurs from the manufacturing and call center sectors will be meeting with companies from Puebla to explore business opportunities.
The aim of the business mission is to attract new investment in the maquila and call center sectors.Specifically, one of the lines of business that they want to expand is export of electrical cables used in the Mexican auto parts industry.
High potential for online shopping in China has brought up opportunities for segments such as bathing suits, where 60% are imported products.
From a statement issued by PROCOMER:
Japan is one of the main entry points to the Asian region and is also a fashion leader, an industry worth approximately $110,000 million. According to a report by ProColombia, Japan imports more than 60% of its swimsuits and it was also found that consumers pay higher prices for these products, making it an attractive market to service.
From October 12th to 16th a group of Salvadoran companies will be visiting Honduras to explore business opportunities in the sectors of food and beverages, manufacturing and services.
The visit is being organized by the Trade Promotion and Investment Agency of El Salvador. Salvadoran companies will promote products such as liquor, baked goods, natural juices, orgeat, barley, leather footwear and clothing.
The maquila industry approves of the government's decision to apply for formal admission into the agreement, which would improve conditions for textile companies competing with countries like Vietnam.
The Honduran Maquila Association (AHM) is one of the unions in the country which is most interested in being part of the trade union agreement, because the United States is the main destination for its production, and where textiles also come from countries that are already part of the agreement, such as Vietnam.
On March 12nd Colombian entrepreneurs in the textile and clothing sector will be gathering in San Jose with Central American companies interested in offering products from the South American country.
It is expected that 70 Colombian entrepreneurs will take part in the event, to be held at the Hotel Real Intercontinental Multiplaza Mall, presenting their textile products to the Central American market.
Honduran textile companies are not prepared for the total elimination of industrial exclusions demanded by Peru in the negotiation of the trade agreement.
The textile sector represents 20% of the items to be negotiated in order to close the FTA deal with Peru. This negotiation focuses on issues relating to rules of origin of threads and a request by Peru to eliminate industrial exclusions.
Peruvian negotiators have asked Honduran maquila companies to use thread from the South American country at the same time as demanding that the agreement not contain exclusions.
The United States is the largest supplier of yarn for used by the Honduran textile industry and at the same time is the largest buyer of its production. In the context of negotiations, Peru is calling for more flexibility so that Honduras can the raw material not only from the US but also from the South American country.
Nicaraguan businessmen have proposed that Central America as a whole operates a preferential tariff treatment in the US for imports of textiles in the region.
After trying to negotiate, through several formats, tariff preference levels (TPL), so far unsuccessfully, textile entrepreneurs are now appealing to the union of the region to address the issue with the US once again.
80% of the volume exported by the Honduran maquila sector in the first half of 2014 corresponds to textiles, 15% to harnesses, and the remaining 5% to other goods.
A report by the Central Bank of Honduras (BCH) specifies that when comparing the figure for the first half of this year with the same period of 2013, "... A slight increase of $8.2 million is observed. "
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.
Textile entrepreneurs anticipate an increase in Canadian investment once the trade agreement with this country takes effect on October 1st, 2014.
Daniel Facussé, president of the Honduran Maquila Association reported that "... representatives of three Canadian companies visited the country and showed interest in investing in maquila and buying sportswear.