The footwear and leather industry has become global and trade in finished
products and/or components has allowed companies in this sector to offer a wide variety of
products to its consumers. The footwear and leather products industry in North America has
been dominated mostly by Asian and European manufacturers. However, under NAFTA, U.S. and
Mexican firms have made inroads and established a stronger pres-ence in this North
American market.
The
U.S. is the world's biggest footwear importer with more than 100 different countries
acting as sup-pliers. Mexico has become an important provider of footwear and
leather products along with China, Brazil, Spain and Italy. U.S.-Mexico trade in footwear
and leather products has been dynamic and during NAFTA's first six years grew close to 90%
reaching US$2.1 billion. Bilateral trade in the sector has been balanced. While in 1999,
these U.S.' exports to Mexico reached US$1.1 billion, Mexico's exports to the U.S. were
US$1 billion.
Currently, Mexico is home to more than 2,200 export firms and 60
maquiladoras that produce and export footwear and leather products.
NAFTA provided a ten-year phase out period for tariffs in
this sector. In 1993, the average tariff paid on US footwear exports to Mexico was 3.5%
while Mexican footwear exports to the US paid a 5.42% duty. In 1999, the average tariff
was 0.24% and 2.72%, respectively. Other trading partners exporting footwear to Mexico
faced an average import tariff of 12.15% in 1999. Footwear and leather products from
non-NAFTA countries faced a 10.81% average import duty when entering the U.S. market.
NAFTA has allowed the North American footwear industry to
effectively compete against Asian imports. According to the Footwear Industries of
America, productivity in the industry has been climbing. NAFTA was the moving force
behind the revamping of the industry in the U.S. and in Mexico.
The footwear and leather industry has become global and trade in finished
products and/or components has allowed companies in this sector to offer a wide variety of
products to its consumers. The footwear and leather products industry in North America has
been dominated mostly by Asian and European manufacturers. However, under NAFTA, U.S. and
Mexican firms have made inroads and established a stronger pres-ence in this North
American market.
The
U.S. is the world's biggest footwear importer with more than 100 different countries
acting as sup-pliers. Mexico has become an important provider of footwear and
leather products along with China, Brazil, Spain and Italy. U.S.-Mexico trade in footwear
and leather products has been dynamic and during NAFTA's first six years grew close to 90%
reaching US$2.1 billion. Bilateral trade in the sector has been balanced. While in 1999,
these U.S.' exports to Mexico reached US$1.1 billion, Mexico's exports to the U.S. were
US$1 billion.
NAFTA provided a ten-year phase out period for tariffs in
this sector. In 1993, the average tariff paid on US footwear exports to Mexico was 3.5%
while Mexican footwear exports to the US paid a 5.42% duty. In 1999, the average tariff
was 0.24% and 2.72%, respectively. Other trading partners exporting footwear to Mexico
faced an average import tariff of 12.15% in 1999. Footwear and leather products from
non-NAFTA countries faced a 10.81% average import duty when entering the U.S. market.
NAFTA has allowed the North American footwear industry to
effectively compete against Asian imports. According to the Footwear Industries of
America, productivity in the industry has been climbing. NAFTA was the moving force
behind the revamping of the industry in the U.S. and in Mexico.