President Sheinbaum Signs a Decree to Protect the Mexican Textile Industry

Workers in a clothing factory in Mexico, 2024. X/ @heraldoags

December 19, 2024 Hour: 12:09 pm

The new measures aim to preserve approximately 400,000 jobs.

On Thursday, Mexican President Claudia Sheinbaum signed a decree to increase tariffs by 35% on manufactured clothing and 15% on textile imports. However, the new regulation will not apply to countries with which Mexico has free trade agreements.

She also expanded the list of products that cannot be imported under the Manufacturing, Maquiladora, and Export Services Industry Program (IMMEX), which allows companies to temporarily import goods to be used in industrial processes or the provision of services. Its goal is to manufacture, transform, repair, or provide export services without paying the general import tax, value-added tax, or compensatory fees.

Economy Minister Marcelo Ebrard explained that the new measures aim to protect approximately 400,000 jobs in the textile industry, which experienced a 4.8% production contraction in 2024. So far this year, around 79,000 jobs have been lost in the textile industry, which is mainly concentrated in the states of Mexico, Puebla, Hidalgo, Coahuila, Guanajuato, and Jalisco.

“Since 2019, we have imported more than we exported. Imports of textiles increased by 0.8%, and manufactured clothing by 12.5%. Companies under the IMMEX program, which imports parts or products that are supposedly unfinished, must return at least 80% of the goods they import.”

Sustainability in every thread 🌱🧵

In Mexico, an innovative workshop artfully combines traditional techniques with natural and upcycled materials to create beautiful home decorations, jewelry and clothing. pic.twitter.com/zX4CFbPJL5
— World Intellectual Property Organization (WIPO) (@WIPO) December 18, 2024

He also explained that companies must prove they used the goods to ultimately export them or complete a productive process. The Economy Minister warned that 48% of these imports did not meet the requirements for return or export and remained in the Mexican market.

“That’s why we are closing the door. These are measures to protect one of the most important industries for employment in Mexico. If we don’t take steps to prevent abuse or the low prices associated with ‘dumping,’ the Mexican textile industry would be at a disadvantage,” Ebrard stated.

“The goal is to foster the development of the Mexican textile industry, promote employment, and ensure fair market conditions,” he added.