Representatives of textile industry workers in the country have started to contact big fashion retailers with local manufacturing sites to seek out supports for a Bangladesh Accord-like agreement.
The South American country, with just 3.4 million inhabitants, has turned into the latest territory conquered by the Swedish group, which recently opened in Montevideo its first store in the Uruguayan market.
In 2017, Spanish fashion groups were valued at about 6.6 times Ebitda, compared to a multiple of 9.7x in the previous year.
The country, second largest manufacturer of shoes worldwide behind China, has lifted import tariffs on this product from 20% to 25%. The decision also affects taxes on precious stones and fuel.
The Mexican fashion industry will be one of the least affected sectors of the Mexican economy in the new United States, Mexico and Canada Agreement (Usmca).
The new agreement between the three countries, named as Usmca, will substitute the former free trade agreement after a year of negotiations. It contemplates a reduction of textile and garment quotas that don’t comply with the rules of origin.
The Asian country, main consumer of this raw material worldwide, could continue shaking up the market after applying tariffs to US cotton, the largest exporter globally.
Levi Strauss, Gap, Nike, VF Corporation, PVH, Michael Kors or Ralph Lauren, with a strong dependence on China in its supply chain, could see their margins reduced by the new tariff policy of their country.
The fear to trade wars and the increase on populist political parties, together with a greater uncertainty surrounding emerging economies will be some of the factors with a bigger impact on the financial system.
The country is immersed in the renegotiation of the North American Free Trade Agreement (NAFTA) with Canada and the United States, in the midst of the global trade war unleashed by Donald Trump’s government.
The UK’s environmental audit committee will analyse the carbon footprint and water consumption made by the fashion industry. The committee has begun to invite professionals from the sector for next September to discuss the topic.
The United States did the first move and imposed tariffs worth 50 billion dollars to Chinese imports. China’s response was to apply rates of 25%.
The European Union (EU) continues to search for allies globally to promote trade exchanges. This month, Brussels started negotiations with Canberra aiming to ink a free trade agreement with Australia and New Zealand.
It’s expected that the worldwide business for luxury products and services will range between 276 billion and 281 billion euros, according to updated data by the Altagamma Worldwide Market Monitor and by the Bain&Company study.
News on the latest macroeconomic indicators related to the textile- and fashion industry worldwide.
