Mexico: Cotton and Products Update

Mexico’s textile industry has rapidly recovered from dramatic effects due to COVID-19 and the global slowdown for cotton products during the first half of 2020. The recovery of global demand for garments, innovation in product offerings, and certainty and logistical transport advantage of textile trade through the USMCA agreement is accelerating cotton consumption. Additionally, high global freight costs have disincentivized the importation of garments from Asia and further boosted domestic textile production. As a result, cotton imports from the United States in MY 2021/22 are expected at levels not seen since MY 2010/11, as domestic production is not sufficient and textile mills prefer high quality U.S. cotton.