The record price achieved for cotton would increase operating costs for enterprises in 2011.
The contract for December delivery closed at $ 1.2463 a pound on Friday, versus $ 1.1971 the previous week, according to Dean Garcia, director of the Nicaraguan Association of Textile Industry. In the last three months the price has increased by 56%.
"For Nicaragua's textile sector it could mean 'stagnation' of sales, so we should be analyzing strategies to confront the situation," Laprensa.com.ni reported.
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 "...
Exports of textiles to August rose 20% relative to the same period of 2009.
The director of the Honduran manufacturing industry association AHM, Guillermo Matamoros, commented that in addition to the return of 13,000 jobs in the textile sector so far this year it is hoped that by the end of the year 20,000 jobs will have been created.
Matamoros acknowledged to Laprensa.hn that, "it is too early to tell how the year will end but if current trends continue the industry will almost recover from the effects of the 2009 crisis when exports fell by $500 million".
The Canadian Ambassador stated that his country could invest up to $700 million in mining and apparel in Honduras.
Honduran President Porfirio Lobo held a meeting with Neil Reeder, Canadian Ambassador, who stated his country’s intention of expanding its mining activity in Honduras.
“They discussed the creation of a mining code in which they could establish legal safeguards for foreing investors, plus a transparent and equal law for the sector”, reported Proceso Digital.
The Honduran Maquila Association asked the European Union to be more flexible when negotiating the Association Agreement with Central America.
Guillermo Matamoros, executive director of the Association, argued that EU’s rigid position “is not in line with its humanist discourse”.
Matamoros explained that Honduras’ textile industry asked for market access for “millions of dozens of apparel units; we hope it is accepted, so far the Europeans have been rigid regarding this topic”.
1,000 new jobs will be created with a new synthetic thread mill.
The announcement was made by Guillermo Matamoros, head of the Honduran Maquila Association.
He also commented that “they are negotiating the arrival of other type of companies, specially call centers, which could create between 25.000 and 40.000 jobs over the next three years, as the North American market recovers”.
Socks exports to the United States will reach $5.4 million by the end of the year, 101% more than 2008, when $2.7 million were sold.
"Honduras textile industry improved in this segment, despite the fact that total textile and apparel exports to the U.S. fell 7%", commented Guillermo Matamoros, director of the Honduran Maquila Association (AHM).
"The textile industry in Honduras is diversifying through larger exports of underwear", reported newspaper El Heraldo.
A group of Democratic senators proposed a law to eliminate tariffs on textile products from 14 Asian countries.
Textile imports from those countries currently pay up to 28% when entering the United States.
Should the proposal be approved, a very likely scenario, the Central American countries would lose the trade advantage obtained with the U.S. free trade agreement, as production costs are lower in Asian countries, because of lower social costs and cheaper energy.
With the closing of enterprises during 2008 and so far in 2009, 20 thousand people were left unemployed.
Most of the businesses operated in free trade zones or industrial parks. Currently, of the one million square meters available in the the 27 parks and free zones, 250 thousand (25%) are unoccupied.
In an article in Laprensahn.com, the president of the Honduran Maquila Association (AHM), Daniel Facussé, "was clear in saying that there are no new investments in sight right now because all the investors are waiting to see how the global economy improves before deciding whether to invest. "
The US extended the tariff benefits and market access to textile and tuna companies for two more years - until September 2010.
These commercial advantages were established in 2000 in an expansion of the so called Caribbean Basin Initiative (CBI).
The extension of these benefits was included in the Farm Bill which was passed by the American Congress last June. The bill is a package of internal agricultural aid.
Starting August 15 the textile sector will have at its disposable new mechanisms to take greater advantage of the Free Trade Agreement with the United States.
Recent modifications to CAFTA offer new benefits to textile companies.
The first is the Textile Accumulation with Mexico and the US which will allow the private sector to produce garments with certain fabrics made in the United States and then export them to Mexico while still enjoying preferential tariffs, explained Ingrid Burgos, representative Textile Industry Chamber (Camtex).
Applying the "country of origin" clause, clothing made in Central America from Mexican textiles will not be subject to U.S. import duties.
The measure, negotiated in 2003, allows U.S. imports of up to 100 million cubic meters per year of clothing made in Central America with Mexican textiles, under the country of origin clause.
Of the 100 million cubic meters, 45 million can be pants and skirts made of cotton or synthetic materials, 20 million of blue denim, a million woolen jackets, suits and skirts, and 34 million garments classified as "other."
Accesorios Textiles S.A. invested 1.5 million dollars to provide labos to manufacturers of garments sold in the United States under the free trade agreement.
This Guatemala company is an example of the multiplier effect of free trade. Since the middle of 2006, when the agreement went into effect, it has invested more than 1.5 million dollars to buy machinery, expand facilities, and hire personnel to diversify its production.