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Competing with China. (New Business).

Chinese textile exports to the United States displaced Mexican textile exports in the first quarter of 2002, the result of the Asian country's entry into the World Trade Organization (WTO).

Chinese textile exports to the U.S. marketplace increased by 27% over the prior year, during the first three months of 2002, while competing Mexican exports to the United States declined by 3.7%, according to Mexico's textile chamber (Canaintex).

"This displacement is the result of China's entry into the WTO, and its subsequent participation in plans to reduce textile duties," Canaintex head Nora Ambriz told local press.

Mexican exporters and importers, particularly in the shoe, textile and toy industries have feared China's entry into the WTO, citing the country's competitive advantage of cheaper labor. Other industries in which the two countries' compete include telecommunications, machinery, electric appliances, electronics and computer equipment.

Despite China's increased exports to the United States, Mexico still continues to export more to its northern neighbor, by volume.

Mexican manufacturers, particularly in the clothing industry, have long had a gripe against their Chinese competitors because of a thriving black market clothing trade in Mexico, based on Chinese clothing imported illegally without paying duties.

Mexico's maquiladora industry over the past several months has warned of increased flights of manufacturing capital to China and other countries, as Mexican unions close to the northern border continue to press for wage levels closer and closer to their U.S. counterparts.
COPYRIGHT 2002 American Chamber of Commerce of Mexico A.C.
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Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Mexico's textile industry
Publication:Business Mexico
Article Type:Brief Article
Geographic Code:1MEX
Date:Jul 1, 2002
Words:240
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