"Mexican footwear must take advantage of the situation", affirmed analysts
"It is of vital importance to generate public policies in economic matters that lead to implement actions in the different sectors that contribute to their strengthening", said Alejandro Gómez Tamez, Executive President of the Chamber of the Footwear Industry of the State of Guanajuato (CICEG), during the presentation of the document "US imports of the global footwear value chain from Mexico" referring to value, tariff rates and transportation cost, prepared by economists Enrique Dussel Peters and Lesbia Pérez Santillán.
The analysts' expressions were intended to stimulate debate on the Mexican footwear industry and design strategies to be more productive and competitive, in order to increase its presence in the neighboring country to the north, at a particular moment in the international market.
According to Dussel Peters, "the objective of this document is to analyze the advantages that Mexico has as a result of the trade war between the United States and China, placing emphasis on the issue of increased tariff rates and transportation costs".
He also mentioned the disruptions in the supply chain, caused by the decrease in production activity in the East, as a result of the pandemic.
He added that the Global Footwear Value Chain (CGVC, in Spanish) faces serious challenges and opportunities in a new scenario shaped by trade tensions and the health crisis.
As a guest, the expert Sergio Gómez Lora, member of Mexico’s International Trade Negotiations team, who was in charge of the actions of NAFTA and the Free Trade Agreements that Mexico has signed with various countries, was present at the presentation of the document.
In his opinion, he sees a great attraction for Mexico in the US market for 4 reasons:
1.- North American integration ratified with the T-MEC.
2.- Advantages of the proximity of Mexico with the neighboring country since the cost of freight has increased.
3.- Asia's risks with the United States' trade war against China
4.- Increase in US government spending and review of supply chains.
Gómez Lora stressed that "the United States trade war with China has generated high tariffs for the products of that Asian country, however this situation has greatly benefited Vietnam and not Mexico, so it is very important to work on strengthening of the supply chains of our country because a significant number of companies could move part of their production to Mexico”.
Finally, Enrique Dussel Peters and Sergio Gómez Lora agreed that footwear should be included as part of the relevant chains for the United States, stating: “Today the value chain of footwear is not included in the agenda between the United States and Mexico and it is very important in terms of exports and job creation”.
RELATED ARTICLES:
Mexican suppliers on alarm due to price increase and shortage of imported components