Women in a maquila factory in Michoacán, as well as businessmen all over Mexico, warn of job losses after a decree published a week ago.
MEXICO CITY.— Business organizations have warned that, as a result of the decree that restricts temporary imports of textiles and clothing, the massive closure of companies, loss of jobs, and considerable economic damage are expected.
Therefore, they requested a three-month extension from the government and a detailed analysis of the measure.
What does Claudia Sheinbaum’s decree say?
The decree published on December 19 in the Official Gazette of the Federation includes an increase in tariffs: 35% for ready-made garments and 15% for textiles from countries without trade agreements with Mexico.
In addition, it expands the restrictions of the Manufacturing, Maquiladora, and Export Services Industry Program (IMMEX), affecting maquiladora companies.
A few days after the decree was issued, the Confederation of National Chambers of Commerce, Services and Tourism (Concanaco-Sevytur), the National Council of the Export Manufacturing and Maquila Industry (Index), and the National Chamber of the Transformation Industry (Canacintra), met with representatives of the Ministries of Economy, Finance and Public Credit, and the Tax Administration Service to analyze the impact.
Although the industrialists of the textile-clothing sector of Mexico welcomed this provision, the maquiladoras warned that it would cause very significant damage.
35 thousand jobs and millions of pesos would be lost
Concanaco-Servytur, Canacintra, and Index said that “so far, in less than 4 days, there are 52 companies that have reported a direct impact of this decision, which implies the loss of approximately 35 thousand jobs.”
“The impact, as the days go by, will include thousands of companies responsible for direct and indirect jobs and with economic damages estimated between 60 thousand and 2 million dollars per company per week,” they said.
The decree will also affect “companies that have merchandise in transit, which, by not being able to import, would have to close their operations within a period of 5 days,” they explained.
According to Humberto Martínez Cantú, president of Index, the decree especially affects IMMEX companies, responsible for generating more than 9 million jobs.
“Maquiladoras are key to exports and jobs in the north, Bajío, center and southeast of the country. Without viable alternatives, their operations are at risk,” explained the businessman.
For Octavio de la Torre, president of Concanaco-Servytur, “any reform must consider its impact on millions of families that depend on these activities” and he stressed that they will maintain dialogue with the government “to find measures that safeguard jobs and the stability of our companies, especially at a time when global competitiveness is essential.”
For her part, Esperanza Ortega Azar, president of Canacintra, said that the decree “puts the heart of the economy at risk: the generation of formal employment and competitiveness.”
Official argument
According to the federal government, the decree seeks to protect the national textile and clothing industry from unfair trade practices and to promote domestic production.
Who is affected by the decree?
Industrial chambers in Mexico are sounding the alarm after the decree impacts textiles.
This measure affects various key industries, including the automotive, textile, furniture, and export services industries.
Estimates of weekly losses range from 60 thousand to 2 million dollars per company.
The decree is issued in the context of trade tensions, as Donald Trump threatens to impose tariffs on various Mexican products.
TYT Newsroom
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