In 2024, The industry generated a trade that is around 20,000 million dollars between the United States, Mexico and Canada. More than half of US textile exports were destined for the bloc.
Integration enabled an ecosystem that countered the advance of China and other Asian countries, which dominate the global market with cheap inputs, massive subsidies and questioned labor practices.
The organization stated that The industry is experiencing its most adverse moment in decadessince 36 factories closed in two years and 30,000 workers in the United States lost their jobs in 2024 alone.
The Asian threat
In Mexico the situation follows a similar path. Business chambers point out that unfair competition from China and other Asian countries directly affects the sector.
Concamin estimates that the textile industry is worth 25 billion dollars, although 70% of that market is in the hands of contraband that arrives from Asia. This pressure has caused the closure of more than 40 companies.
The Secretary of Economy Marcelo Ebrard affirms that the textile sector lost about 80,000 jobs. Given this, the government launched several measures that include tariffs on Asian countries, the cancellation of the IMMEX temporary import program for this industry and financial support aimed at strengthening its productive capacity and recovering jobs.
According to data from the National Institute of Statistics and Geography (Inegi), clothing manufacturing remains in negative territory since November 2022.
Maintain zero tariff
The United States calls for maintaining the exemption from tariffs for goods that comply with the T-MEC, even under the measures adopted under the International Emergency Economic Powers Act. The NCTO also requested to extend this benefit to Central American countries with which there is a current treaty. He argued that the imposition of reciprocal tariffs immediately affected regional production.
If the tariff policy punishes allied countries in the hemisphere instead of sanctioning the practices of China and other Asian countries, the region will lose almost a million direct and indirect jobs, and the United States will further reduce its industrial capacity.
Another central point is the rule of origin. The sector asked to preserve the “yarn to garment” principle, which requires that inputs come from the block to receive preferential treatment. He considered that current exceptions, such as tariff preference levels, allow threads and fabrics from China to enter the North American market disguised as a regional product. The organization proposed reviewing these exceptions to avoid value leaks and ensure that the benefits of the agreement boost local production.
The council requested to toughen the fight against customs fraud. The industry suffers from practices that include false classification of goods, triangulation to alter the country of origin, and undervaluation. The document called for establishing public lists of repeat importers, applying higher penalties and forcing Mexico and Canada to punish those responsible more rigorously. He also called for publishing quarterly compliance data to give transparency to the system.
The document insisted on a point that worries legislators, security agencies and humanitarian organizations. The infiltration of cotton and products manufactured with forced labor in Xinjiang continues to be present in the supply chains of several Asian countries. The organization requested that Mexico and Canada adopt measures similar to the US law that prohibits the entry of goods linked to coercive practices. According to their estimates, a significant part of the textiles that arrive from Asia contain inputs from that region.
The organization raised another strategic concern. The incorporation of Mexico and Canada into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership opened a door for Asian products to enter the North American bloc with tariff preferences. The industry asked the US government to review this issue during the evaluation of the T-MEC and consider the possibility of asking partners to leave the trans-Pacific agreement if the practice affects producers in the bloc.
The document also warned about the accelerated growth of Chinese investment in Mexico. Although the official figure amounts to 2.3 billion dollars between 2017 and 2024, various private sources estimate higher amounts. For the US industry, the expansion of Chinese companies in Mexican territory facilitates the entry of goods into the US market with preferential treatment. For this reason, he requested to explore joint supervision mechanisms and stricter controls on foreign investment.
The conclusion of the textile council brings together all the concerns. The USMCA is the most important dam against Asian dominance in a sector punished by decades of unfair practices.
