Peruvian textile entrepreneurs ask for greater protection of their industry against China

Posted on

Sep 15 2021

The trade agreement signed between China and Peru is in force for 11 years this year and maintains its protection for the textile industry, however, traders say that this is not enough. Peruvian textile entrepreneurs seek greater guarantees for competitiveness.

Textile Industry Peru – Archive

The agreement signed in 2010 virtually left out the textile industry, as one of the protection chapters, that is, textiles and clothing were included in the import exceptions. To date, textiles and clothing of Chinese origin that enter the country have tariffs of up to 11%.

Although the tax relief for the trade agreement does not apply to the textile sector, its tariffs are preferential and labeled as very low, since the 11% tariff surcharge on textile imports is not enough to compensate for the wage difference between China and Peru, the costs manufacturing and currency devaluation.

The Peruvian textile industry fights for competitiveness, although the sector does not compete in the price market abroad, but in quality, the local market is largely affected by imports. In the local market, companies do compete for prices, so the importation of low-cost garments ends up affecting the generation of employment and local manufacturing.

The Government overthrew the dumping motions and subsidies. Entrepreneurs are waiting for new measures that will allow them to continue competing in the local market. Gamarra, the country’s largest textile emporium, is estimated to have lost at least 30% of its market strength since the start of the pandemic.

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