Prospects for the Textile and Clothing Industry in Colombia

PRLog (Press Release) – Feb 14, 2007 – In 2003 Colombia’s textile and clothing exports to the USA, the industry’s most important trading partner, were 51% higher than those recorded in the previous year. This increase can single-handedly be attributed to an extension of the Andean Trade Promotion and Drug Eradication Act (ATPDEA) in October 2002, which provided Colombian textile and clothing exports with quota-free and duty-free access to the USA.

This strong performance has pushed the textile and clothing industry into a prominent position in Colombia’s economy. Indeed, in 2003 textiles and clothing represented the country’s fourth largest export earner—ahead of one of Colombia’s most famous exports, coffee. The main contributors to the growth in textile and clothing exports have been Colombia’s low labour costs, its proximity to the US market, and the industry’s verticalised structure—from fibres to finished garments. However, the industry is now at a crossroads. Clothing manufacturers are not able to make full use of the ATPDEA as they are being held back by a shortage of locally produced fabrics. Government initiatives to encourage new investors are stifled by concerns over ongoing internal civil strife. The industry is heavily dependent on US customers, but is vulnerable to competition from Asian clothing suppliers who will gain access to the US market free of quota restrictions in 2005. Furthermore, the ATPDEA is due to end in 2006, and a new free trade agreement with the USA has yet to be negotiated.

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