Top Denim Fabric Exporting Countries For Mexico During 2014-2017

With the reported GDP of USD 1.26 Trillion  , Mexico is the 15th Largest economy in the world and In Textile production, it has the fourth largest manufacturing activity in the country which includes the making of thread, cloth and decoration, in both natural and synthetic fibers. Around 415,000 workers directly employed in the sector out of which 74% worked for the apparel sector and remaining 26% worked for the textiles sector.The Textile Industry has not only become the major revenue and employment source but at the same time plays a significant role in the export sector.

Mexico is also a part of Important Trade Agreements as below  :

1. NAFTA: Textile and apparel sector growth has been spurred on by NAFTA. It is by far the most important export market for Mexico sector. Mexico has been the key US supplier, ahead of China, Hong Kong and Taiwan.
2. MEXICO-EU FTA: FTA enables closer economic co-operation between Mexico and the EU. This will provide EU Companies preferential access to the major markets in North and South America through Mexico’s via extended FTA network.
3. MAQUILA PROGRAM: Mexico initiated its maquila program to encourage the development of export manufacturing industries by waiving import duties on capital goods and material inputs used in the manufacture of products for export.

Denim has been an important part of the textile and apparel industry in Mexico  . In fact , Mexico was the largest exporter of jeans to US before China came in . Even now substantial jeans are exported to US. However, in this report, we check out the denim fabrics exported from Mexico to different countries around the world. The contents of this report are as below : [private_special]

Mexico Denim industry is diversifying and had been growing stronger , having said that , the country has been facing some tough fight from Asian Countries . The Denim Export Of Mexico is not so encouraging as from the year 2016 , it has started declining . In the year 2015 , the total denim export was approx. 44 Million Sq.Meter which reduced to approx. 41 Million Sq.Meter in the year 2016. From Jan To August , 2017 , the total export is around 24.5 Million Sq.Meter which is being estimated to react at 37 million Sq.Meter at the end of 2017 which is still 4 Million Sq.Meter lesser than what it was in the year 2016 .After the debut of Mr President Trump in US Political system , NAFTA found itself into jeopardy. The final decision on this yet to come but the speculations aren’t so in favor of NAFTA , according to sources.

% Share Of Total Export From Mexico To Top 2 Countries From 2014-2017

Nicaragua and USA are the two major markets for Mexico in past few years and share over 55 % in the total export of denim fabrics . In the year 2014 , NICARAGUA and USA had 39.15% , 16.23% share respectively in the total export by Mexico however In the year 2016 , the share of NICARAGUA reduced to 37% and share of USA Increased to 25.66 % . In the first 8 months of 2017* , NICARAGUA looked very strong with 45 % share and USA has also increased its share to 28.50 % .

1. Top 5 Exporting Countries During January- August 2017 

During  the first 8 months of 2017 , Mexico exported 24.47 Million Sq. Meter of Denim fabric out of which 11.01 Million Sq. Meter to Nicargua And 6.97 Million Sq. Meter exported  to USA at an average price of USD 1.77/ Sq. Meter and USD 1.79/Sq. Meter respectively to both countries . Both Countries accounts 73.50% Share in total exports . Export to Colombia made at the least average price i.e, USD 1.74/Sq. Meter.Other important countries for exports were Guatemala, Colombia and Dominican Republic.

2. Top 5  Countries Receiving Denim Fabrics From Mexico In 2016

In the year 2016 , Mexico exported 41.62 Million Sq. Meter of Denim fabric out of which 15.47 Million Sq. Meter to Nicargua And 10.68 Million Sq. Meter exported at an average price of USD 1.78/  Sq. Meter and USD 1.93/ Sq. Meter respectively to both countries . Both Countries accounts 62.81% Share in total exports . Export to Guatemala made at the most expensive average price i.e, USD 2.61/ Sq. Meter. Average Price of Ecuador is USD 0.02 / Sq. Meter which is not right and is a result of sheer undervaluation.

Note: The price of Equador looks very low. However, we need to ignore this as some times custom values do not show correct prices as sales are underinvoiced to avoid duties.

3. Top 5 Exporting Countries In 2015

In the year 2015 , Mexico exported 44.89 Million Sq. Meter of Denim fabric out of which 16.41 Million Sq. Meter to Nicargua And 8.55 Million Sq. Meter exported at an average price of USD 1.77/  Sq. Meter and USD 2.27/ Sq. Meter respectively to both countries . Both Countries accounts 54.62% Share in total exports . Export to Guatemala made at the most expensive average price i.e, USD 2.61/ Sq. Meter.

4. Top 5 Exporting Countries In 2014

In the year 2014 , Mexico exported 36.85 Million Sq. Meter of Denim fabric out of which 14.42 Million Sq. Meter to Nicargua And 5.98 Million Sq. Meter exported at an average price of USD 1.90/  Sq. Meter and USD 2.48/ Sq. Meter respectively to both countries . Both Countries accounts 54.38% Share in total exports . Export to USA made at the most expensive average price i.e, USD 2.48/ Sq. Meter.

Trend Of Average Price Of Top 2 Exporting Countries During 2014-2017

So we see that Mexico tends to export its major denim fabric productions to either US or Nicaragua. Now with many denim garment companies in US closing down, we will find that the exports of denim fabrics from Mexico to US will reduce.

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