by Apparel Resources News-Desk
26-April-2019 | 2 mins read
Mexico and Canada, the NAFTA countries, have failed to see any positive turnaround in their respective apparel export to the USA during Jan.-Feb. ’19 period. Import by the USA from these countries was down by 9.37 per cent and valued at US $ 589 million against US $ 649.92 million in the same period of prior year.
The decline noted from Mexico was 10.28 per cent as export plunged to US $ 498.62 million in the first two months this year as compared to US $ 555.62 million in the corresponding period last year.
On the other hand, Canada too fell 4.11 per cent and clocked US $ 90.41 million as compared to US $ 94.29 million in the same period of 2018. The fall in exports from Mexico and Canada was witnessed despite the close proximity of these countries with the USA.
On contrary to this, the USA surged in its worldwide import by 5.12 per cent which signals towards the rising demand in the US apparel market. Amidst this rising demand in the US, downturning export of Mexico and Canada is a worry as NAFTA agreement is still alive but is not helping these countries to gain a good chunk in the US apparel market.
However, US President Donald Trump has been fiercely critical of NAFTA and has even proposed USMCA (United States-Mexico-Canada Agreement) which has not yet been approved by US congress.
It’s worth recalling that the USA and Mexico had renegotiated trade deal between them last year (Canada is yet to confirm its addition to it) which was supposed to benefit latter in apparel production and shipment to USA but that did not happen.
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