Textile industry drops 10.1% during 2001.

MEXICO CITY, Apr 8, 2002

During 2001, the GDP of the Mexican textile industry dropped by 10.1%, which caused the loss of 32,000 jobs, reported Adolfo Kalach Mizrahi, president of the National Textile Industry Chamber (CNIT).According to Kalach, the origins of the decline are in the "U.S. economic recession after the terrorist attacks of September 11; the 'strength' of the peso reducing the competitiveness of Mexican products, persistent contraband and the increasing operational costs in the sector."Textile exports dropped by 7.6% during 2001, while imports increased by 1.8%. Imports in the clothing manufacturing industry grew by 37.7%. Kalach said that nearly 50% of imported textile products are illegal and called on authorities to take the necessary measures to solve the crisis.The executive said the sector urgently needed the banking sector and the government to grant lines of credit to help it overcome the problems.

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