HomeArchiveTextile Industry Reports Layoffs

Textile Industry Reports Layoffs

TEXTILE industry leaders used theannouncement of 400 layoffs by TextileraVF, the Costa Rican operation of Lee andWrangler, as an opportunity to reiteratethe need for the passage of the CentralAmerican Free-Trade Agreement with theUnited States (CAFTA) to avoid futurejob losses.“The world has become much morecompetitive for the textile industry,” saidMiguel Schyfter, president of the NationalAssociation of Textile Industry Exporters,last week in reference to the recent liftingof textile quotas that regulated apparelexports from China and India.The quotas, put into place in 1974 toprotect textile industries in Europe andNorth America from Third-World competition,were later declared to be a hindranceto free trade by the World TradeOrganization (WTO). The gradual phasingout of the quotas began in 1995 andended Jan. 1 (TT, Jan. 7, 2005).Schyfter and other leaders said thisnew wave of competition, combined withdoubt over the future of CAFTA, couldswamp Costa Rican textile exporters andcause foreign firms to dismantle theiroperations here.Those present at last week’s pressconference targeted President AbelPacheco, who refuses to send CAFTA tothe Legislative Assembly until the assemblyreforms the tax code, as a majorobstacle to Costa Rica’s successful economicfuture.Marco Vinicio Ruíz, a business executiveand former president of the Union ofPrivate-Sector Chambers and Associations(UCCAEP), said Pacheco’s position is“wrong, with all due respect.”He added that Pacheco is “well-intentioned…but badly advised,” and went onto suggest that pressure from workers’unions that oppose the trade agreementhas swayed the President’s opinion ofCAFTA.The 400 layoffs announced Jan. 20mean a total of 750 textile workers havebeen fired over the past year, according toa statement from the textile association.Because the textile industry in CostaRica provides approximately 15,000 jobsin direct employment and 5,000 in indirectemployment, the prospect of additionallosses could drive up poverty rates,industry leaders argued.

Trending Now

Costa Rica Tourism Falls for a Second Month as US Arrivals Drop

Costa Rica tourist arrivals fell 2.4% in September, the second monthly drop, as US visitors slipped 3.3% and Liberia grew 11.8%.

First Tampa to Costa Rica Nonstop in 25 Years Is Now Flying Twice a Week

Tampa and Costa Rica are linked nonstop again for the first time in 25 years. Breeze's twice-weekly flights are now operating.

Credit Card Purchases Offer New Leads in Killing of American in Costa Rica

Supermarket purchases and a hotel stay allegedly paid for with a dead American’s credit cards have given investigators new leads in the search for...

Carlos Alcaraz Stunned in Shanghai as Zverev Clinches Year-End No. 1

Carlos Alcaraz’s comeback run hit an unexpected setback Monday, when Belgium’s Zizou Bergs knocked him out of the Shanghai Masters, ending the Spaniard’s chances...

Dollar Slips Back Toward 450 Colones, Shrinking What Your Dollars Buy

The dollar closed Friday at 452.92 colones on Monex, down from 460.45 on Oct. 1, reducing what anyone earning or saving in dollars gets in Costa Rica.

Rents in Costa Rica Outpace Inflation Nearly 10 to 1 but Leases Cap the Hit

Rents rose 3.27% in a year while inflation was 0.34%. Here is what the law lets your landlord charge mid-lease and at renewal.

Costa Rica Audit Finds Long Delays for Stomach Cancer Diagnosis and Treatment

Patients with stomach cancer in Costa Rica can face months of waiting for tests, biopsy results and treatment, according to a CCSS audit that...

Costa Rica Opens Prison Modeled on El Salvador’s CECOT

Costa Rica's new maximum-security prison opens today, but no inmates move in until late October. Here is how it will operate, who goes first and the legal fight over its rules.

Matthew McConaughey’s Tequila Brand Debuts in Costa Rica Through Luxury Hotel Partnership

Pantalones Organic Tequila, owned by Matthew and Camila McConaughey, makes its Costa Rica debut at Nekajui with four cocktails inspired by Texas, Brazil and Guanacaste cowboy culture.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel