Guatemala Sees Growth From U.S.-China Trade War

GUATEMALA CITY — Guatemala’s textile and apparel industry expects to grow 10 percent to some $1.8 billion this year as the trade war between the U.S. and China boosts orders and it exports more fabric to neighboring countries. Alejandro Ceballos, president of top trade lobby Vestex, made the projection at the latest Apparel Show trade fair here last month, adding, “The trade war with China is bringing new clients and brands have reduced their presence in Nicaragua and Honduras” amid political strife in those countries. Guatemala faces its own political turmoil, though, after presidential elections on June 16 generated allegations of election fraud and produced no clear winner. A recount has been ordered by the country’s Supreme Court, while a runoff election is set for Aug. 11. Whatever happens, one thing is clear: More brands are looking at Guatemala and Central America to source their apparel, both to benefit from speed to market and zero tariffs under the CAFTA-DR free-trade agreement with the U.S. New brands and retailers such as Lacoste, Spain’s El Corte Ingles and children’s socks maker Gold Bug visited the four-day fair this year, according to Vestex. Meanwhile, Guatemala is exporting more polyester and yarn to neighbors to forge a more integrated

Follow WWD on Twitter or become a fan on Facebook.

Read More...

from WWDWWD http://bit.ly/2FopvGT