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The Mexican textile market accounts for 3.2% of Mexico's manufacturing GDP compared to 2.8% for the apparel industry. Interestingly, both the textile industry and apparel manufacturing in Mexico account for 20% of all manufacturing employment. Mexico is a major textile producer due to lower than average labour costs and the market's close proximity to the United States. Mexico's strong ties with the United States economy means that the textile industry is very sensitive to any dollar fluctuation. In 2009, the textiles industry in Mexico lost 68,000 jobs and several companies closed. Mexico is currently the fourth supplier of textile and apparel products to the United States with the import market expanding by 26% in 2010.
The major textile manufacturing centres are located in Guadalajara, Monterrey and Mexico City. Mexican yarn producers do not cover all the needs of the fabrics sector and as a result, a significant amount of yarn is imported, especially polyester / vicose and polyester / cotton.
The Mexican textiles sector has a large number of agents and distributors for market entry and the distribution of goods. Any exporters to Mexico can benefit from the NATA Certificate of Origin agreement which was signed in 1994. Mexico reduced its tariffs on textile and apparel imports from the United States although a certificate of origin is required to be held for a minimum of 10 years. The origin rules as part of the NAFTA agreement are complex and detailed.
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