JAMAICA: Apparrel Exports on the Decline

KINGSTON, Dic 15 (IPS) - Officials here say Jamaica is losing the battle against its competitors in the Caribbean Basin for market share in the apparel industry to the United States.

"Honduras and Guatemala have overtaken Jamaica and we are in danger of being overtaken by El Salvador," Chairman of The Caribbean Apparel and Textile Institute (Caritex), Peter King says.

Caritex is the Kingston-based industry think tank. It has reported that Jamaica has dropped to the number five position on the list of Caribbean Basin exporters to the United States from last year's number three position.

Between January and September this year, this northern Caribbean island exported garments valued at 428 million dollars coming behind the Dominican Republic with 1.1 billion, Costa Rica 505 million, Honduras 457 million and Guatemala 445 million.

"It is extremely doubtful that we will achieve our target of 540 million for the year to all markets, " says King

The bulk of Jamaica's garment exports is under the United States' 807 programme in which cut fabric is sent here for stitching and re-exported to the U.S. with duty paid only on the Jamaica value added.

The country's exports to the European market is also on the decline. Export to Europe amounting to 52 million dollars in 1993 represented a 24 percent decline on the 1992 figure. Officials however attributed that decline to the recession in Europe.

Officials in the garment industry say part of the current problem stems from Mexico's membership in the North American Free Trade Agreement ((NAFTA) with the U.S. and Canada which has allowed it to attract much more investment in an industry that is footloose.

And at the time when Jamaica's apparel export to the United States is on the decline, Mexico has experienced a 43 percent increase in exports to that country during the first nine months of this year.

Apart from this competition, however, industry officials say there are other problems in the society which invariably have a negative effect on the sector.

Low productivity and difficulty in attracting employees to an industry that is perceived to have sweatshop conditions, is a major factor.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service