Tariffs will help recover jobs: Canaintex

The government's proposal to increase tariffs by up to 50% on Chinese products and other nations with which Mexico does not have a trade agreement is "opportune" for the textile and apparel industry to recover nearly 100,000 jobs lost due to illegality, with the strategy of replacing imports of fabrics and clothing from Eastern countries, as well as labeling them with "Made in Mexico," said the president of the National Chamber of the Textile Industry (Canaintex), Rafael Zaga Saba.

If the tariff of 10 to 50% is applied to imports from the East, it would represent a "rescue" for the national industry, which has suffered more than 10 consecutive quarters of negative manufacturing GDP and 950,000 job losses over the course of two years, the industrialist asserted.

In an interview with El Economista, the president of Canaintex stated that most sectors of the textile and clothing chain in Mexico are projected to have a 35% tariff, and some fabrics, such as wool, a 50% tariff.

He stated: "We are fully on track to recover the jobs lost over the last two years and to have our factories operating at 100% capacity (they currently have 60% capacity)."

The plan is for Mexico to regain its position as a world power in various products, such as jeans. Zaga Saba recalled that "one in three men's pants sold in the world's largest market, the United States, are made in Mexico, and that product, from the cotton to the jeans, will have the benefit of being 100% national. Anyone who wants to compete will have to pay a higher tariff."

He insisted that the imposition of tariffs submitted to Congress, which the industry trusts will be approved, "is a perfect fit, since we can make a product that is 100% national, 100% in Mexico, with an economic impact from the field to the showcase, and with Mexican hands."

Of the textile and clothing chain, 1,400 tariff items will have an average tax of 35%. Therefore, Canaintex is working with the Secretary of Economy, Marcelo Ebrard, and Luis Rosendo, the Undersecretary of Foreign Trade, to study how many tariff items can be replaced so that the industry can meet this demand.

Even as part of the Mexico Plan, the textile industry committed to investing 2.8 billion dollars by 2030 to strengthen the domestic market with the “Made in Mexico” brand, address government purchases and reinforce North American exports.

Just last year, the textile industry claimed that illegality had taken over 60% of the formal market, with foreign trade programs like IMMEX, which import products with tax benefits designed for processing, manufacturing, and re-exportation, but in reality divert them to the domestic market without paying taxes.

The president of Canaintex also expressed confidence that changes will be made to customs to limit the possibility of triangulation or smuggling.