U.S.—Mexican Trade Opportunities: Toward the Development of a Globally Competitive North American Apparel Industry

Abstract

As a result of relaxations on trade restrictions, economic reform in Mexico and the pending U.S.—Mexican free trade agreement, there will be increased opportunities for cooperation between U.S. and Mexican apparel manufacturers. Some see Mexico’s entry into NAFTA as the first step toward a Western hemisphere-wide free trade agreement. Such a concept envisions a Western hemisphere trading bloc that could dominate global trade. Complementing the present Canada—U.S. FTA with the unique advantages offered by Mexico, a globally competitive apparel-manufacturing industry is possible. Indeed, the combination of labor and market power could result in an apparel industry that will compete effectively in a global market. However, it is essential for both U.S. and Mexican apparel producers to understand and act on these opportunities. This chapter will address the market opportunities for increased apparel trade between the United States and Mexico and the potential for the development of a globally competitive apparel industry.