Mexico: Retailers Descend on Mexico

Compare and contrast: Retailers pay millions of dollars to leave Argentina, while they’re descending on Mexico

Spurred by Relaxation of Tariffs on Clothing, Youth-Oriented Stores Head South, among them H&M, Zara, and Gap, all aimed at the younger consumer (I do shop at Zara for its classic, yet updated, style)

Encouraging the retail newcomers is the relaxation of steep tariffs on imported clothing. For more than a decade, Mexico applied antidumping duties as high as 533% on Chinese-made apparel to bolster its domestic garment industry. But in December 2011, the country eliminated the last of those transitional duties on Chinese clothing, lowering that barrier to entry. Currently the top tariff is a more palatable 25%.

“Because Mexico is a huge aspirational market, the removal of import tariffs for apparel may well be the single most-important retail event in the country in the past few years,” says a report by analysts at Credit Suisse, CSGN.VX -3.34% which estimates that clothing in Mexico was previously at least 50% more expensive than clothing in the U.S.

It’s all part of Mexico’s market-friendly policy by decreasing trade barriers.

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2 Responses to “Mexico: Retailers Descend on Mexico”

  1. Retailers Descend on Mexico - US Message Board - Political Discussion Forum Says:

    [...] Youth-Oriented Stores Head South Fausta's blog gives us this interesting story with links @ Mexico: Retailers Descend on Mexico | Fausta's Blog In my recent trip to Mexico, I was no longer surprised by the WalMart, Office Depot, Lowe's, [...]

  2. The Colombia-loves-NATO Carnival of Latin America and the Caribbean | Fausta's Blog Says:

    [...] Mexico: Retailers Descend on Mexico [...]