Page 58 - New Cloth Market November 2022 Digital Edition

INTERNATIONAL BUSINESS PAGES

(mirror data available in TradeMap). Its
aim is to understand the share of the
main countries supplying these inputs
in the value chain of the finished gar-
ment industry.
The Textile and Apparel Sector in
Honduras

Most of the companies (maquila in
general) are members of the Asoci-
ación Hondureña de Maquiladores
(Honduran Manufacturer’s Associa-
tion–AHM in Spanish) 1. In 2014 it reg-
istered 265 affiliated companies; in
2018 it registered 306 companies, and
as of 2022 it has already registered 319
companies. Seventy-two of them are
apparel-manufacturing companies and
19 are textile and spinning companies
(the rest of them include other special-
ties not related to textiles). Most of ment for Goods and Services between finished product when the fabrics are
them are located in San Pedro Sula, Guatemala, El Salvador, Honduras, and made from continuous natural, synthet-
followed by Choloma, which is the sec- Mexico was signed. It did not include ic, or artificial fibers, not carded or
ond municipality with more companies the textile sector and its manufactur- combed or otherwise prepared for spin-
in Free Trade Zones, according to ing by Honduras, but Guatemala and ning, chemical materials, or textile
AHM's data. El Salvador did include it. In that same pulp.
year, 2000, the US approved the Ex-
More than 2,000 micro-enterprises The textile manufacturing industry in
pansion of Benefits of the Caribbean
have flourished around this textile in- Honduras is focused on achieving the
Basin Initiative Act (CBI) or Caribbean
dustry development in the Choloma highest production at the lowest pos-
Basin Trade Partnership Act between
area, in addition to the spread of the sible cost. According to AHM data,
the US and the Caribbean countries,
informal sector that provides comple- 90% of the jobs in maquilas are per-
which provided relief to the industry
mentary services to maquila workers, formed by young women with no for-
recession that had begun the previous
such as cabs, restaurants, urban trans- mal education.
year.
portation, banks, cooperatives, enter-
Currently, the textile industry has in-
tainment venues, etc. The Government This law allows countries to export their
vestment from countries such as the
has invested in social projects such products to the US market on equal
US, Canada, Taiwan, Hong Kong, Ger-
as childcare centers and parks, sew- terms with Mexico, by exempting val-
many, Denmark, France, Korea, Mexi-
age treatment plants, and other social ue-added export taxes or reducing them
co, El Salvador, Guatemala, and Cos-
projects. with preferential tariffs, as a result of
ta Rica, among others. Garments are
having signed NAFTA. It applies to all
Municipal governments have also ben- products made with fabric manufac- produced in the country for brands such
efited from the maquilas by increasing tured and cut in the US. A quota of as JC Penney, SanMar, Nordstrom,
their revenues through the increased 250 million square meters of fabric Dickies, HBI, Nike and Adidas, among
income of maquila employees. This woven in the region was established others. In addition, the country produc-
higher income also generates increased for the manufacture of other types of es its own brands, the most important
cash flow, which boosts commercial garments and a quota of 4.2 million of which is Lovable, an underwear brand
activity and with it, taxes on industry, dozen for T-shirts made with fabric that is established in the region with
commerce, and services; permits for woven regionally. The quotas were dis- stores in the Dominican Republic, Par-
business operations and construction tributed among the beneficiary coun- aguay, Guatemala, Costa Rica, Pana-
permits, and real estate. The need for tries as per agreement among them. ma, El Salvador, and other countries.
more housing and the withholding of Elcatex (Elásticos Centroamericanos
municipal personal income tax paid by Europe also grants preferential tariffs y Textiles) founded in 1984, is owned
maquila employees has also in- to apparel exports from Honduras, with by the Canahuati family, operates in
creased. the issuance of a Form A certificate the Choloma Maquila Zone. It employs
of origin to manufacture knitted fabric 6,000 people and has an innovation
In the year 2000, the Free Trade Agree- in the country, conferring origin to the center, which works in conjunction with

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