Mexico- Country Analysis and Textile Industry

Golam Robbani

United Mexican States, a familiar country which we know as Mexico is a country in the southern part of North America. Mexico is the world’s 13th-largest country by area and 10th-most-populous (1.61% of the World population by 31 Mar 2022) country with the most Spanish speakers. Mexico is organized as a federal republic comprising 31 states and Mexico City (Spanish: Ciudad de México), it’s capital. The border of Mexico to the north is the United States; to the south and west is the Pacific Ocean; to the southeast part of Guatemala, Belize, and the Caribbean Sea; and to the east is the Gulf of Mexico. Mexico has a rich cultural and biological heritage, as well as a varied climate and geography which make it a major tourist destination. Tropic of Cancer effectively divides the country into temperate and tropical zones. North of the Tropic of Cancer experiences cooler temperatures during the winter months and south of the Tropic of Cancer, temperatures are fairly constant year-round and vary solely as a function of elevation. This gives Mexico one of the world’s most diverse weather systems. Mexico is the sixth-largest oil producer in the world. Though a very small percentage of Mexico’s GDP depends on agriculture, it produces domesticated plants such as maize, beans, tomatoes, squash, cotton, vanilla, avocados, cacao, various kinds of spices, and more. Mexico is a developing country, ranking 74th on the Human Development Index. In 2020 Mexico was the number 15 economy in the world in terms of GDP (current US$), number 9 in total exports, number 13 in total imports, the number 80 economy in terms of GDP per capita (current US$) and number 21 most complex economy according to the Economic Complexity Index (ECI, 11th-largest by PPP, with the United States being its largest economic partner. Its large economy and population, cultural influence, and steady democratization make Mexico a regional and middle power.

Maxico Export Emport data
Demography, Geography and Economy of Mexico
Demography, Geography and Economy of Mexico

The textile industry of Mexico is historical. The oldest known fabric fragments in Mexico which came from approximately between 1800 and 1400 BCE have been found in the north of the country. In pre-historic times, cotton was permitted only for the upper classes to wear it. Even it was often used as money. Indigenous, European and Asian fabrics influenced Mexican cloth production by the mid-colonial period. By 1580, Mexico had become one of the most productive areas for wool and silk cloth.

Mexican cloth production

In old days clothes were made to last for decades but in today’s world, people like to use new clothes more. Also, the mechanization of weaving has changed, which has made fabric inexpensive. This change also has come to modern Mexico in the production and distribution of goods and in firms’ management and structure. The mass production of textiles, especially cotton textiles, developed earlier than in other countries outside of Western Europe and the United States. The sewing machine appeared in the early 20th century and became widely used to join the fabric and for embroidery. This led to another level of textile production. Today, textile production plays an important role in the gross domestic product of Mexico, since it is exported and generates employment. Textile production includes the making of thread, cloth and decoration, in both natural and synthetic fibers. It accounts for about 1.2% of the total GDP and 7.1% of the manufacturing sector. Two-way trade in goods and services between the United States and Mexico totaled USD 582.4 billion in 2020, positioning Mexico as the third-largest overall U.S. trading partner. During this period U.S. exports to Mexico totaled USD 235 billion and imports totaled USD 347.4 billion. More than USD 3.5 billion of the imports came from the textile sector.

Export of maxico

Diplomatic relations between Bangladesh and Mexico were officially established on 8 July 1975, four years after Bangladesh’s emergence as an independent country. Since then, the relations between the two countries have increased. Both countries emphasize closer economic ties and further exploration of bilateral and multilateral cooperation. Mexico’s Exports to Bangladesh were US$7.46 Million in 2021, according to the United Nations COMTRADE database on international trade. With the agreement in place, bilateral trade between Bangladesh and Mexico is expected to reach $1 billion, increasing from the current $400 million, says a press release. Bangladesh mainly exports cotton, textiles and shoes to Mexico and Mexico mainly exports motors for elevators to Bangladesh. Bangladesh at present is the 2nd largest exporter of RMG after China. Its T&A exports have increased at a CAGR of 8% over last 5 years from $25 billion in 2012 to $36 billion in 2017. Bangladesh at present has around 4,500 operating garment factories which provide employment to about 4 million people.

Maxico textile and clothing export

Bangladesh has the potential to reach $100 billion in apparel exports by 2025. Bangladesh is still dependent on imports of fabric and yarn; however, it is focusing on setting up of large-scale spinning and weaving factories. According to the World Trade Statistical Review 2021, Bangladesh became the seventh-largest importer of textiles globally. The WTO statistics also showed that its share of Bangladesh in the global textiles import market also fell 2.46 percent in the last year which was 3.10 percent in 2019. Considering the size of the population o Mexico and its buying capacity, Bangladesh has a high prospect of increasing trade relations with the Latin American market.