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Sourcing in Central America Ramps Up in Line with Need for Shortened Supply Chains

(Tara Donaldson – Sourcing Journal)

In apparel sourcing, one region’s trashed trade deal is another region’s treasure.

For Central America, the U.S. pulling out of the Trans-Pacific Partnership that would have seen trade ease between America and 11 Pacific Rim nations, has meant more opportunity—and opportunity at a time brands and retailers are increasingly looking for closer-to-home sourcing options.

“We see an opportunity here now that TPP is cancelled,” Lucia Palacios, who does marketing and promotion for Vestex, a representative organization for apparel manufacturers, textile mills, services and trimmings in Guatemala, said at Texworld USA Monday. “What we do in Guatemala is flexible and high added-value garments. We will never compete with basic tees or basic shirts compared to Asia.”

For Guatemala, catering to the U.S. market has been priority No. 1 as the U.S. currently takes in 80 percent of the apparel and textiles Guatemala puts out. And in the first half of the year, Palacios said Guatemala’s textile and apparel exports are up 10 percent and she expects that growth to continue. Click here to read more (registration required).