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

Booking a Red Taxi on Uber in Costa Rica Can Cost 2.5 Times More

If you open Uber in Costa Rica and tap the red taxi option, check the price before you confirm. On a longer ride, it...

Snoop Dogg’s Costa Rica Promoter Says He Once Turned Down a Suitcase of Cash

Don Stockwell, the promoter of Snoop Dogg's now-canceled Costa Rica concert, told prosecutors he once rejected a suitcase full of cash and never suspected drug money.

Costa Rica’s First Artificial Beach Runs on Well Water as Guanacaste Dries Out

Costa Rica's first artificial beach draws on well water as Guanacaste heads into an El Niño dry season with forecasts of 80% less rain.

Costa Rica Ransomware Attacks Rise 39%, Microsoft Reports

Ransomware attacks targeting Costa Rica increased by 39% over the past year, placing us among the world's ten most affected nations, according to Microsoft's...

Costa Rica’s Lesser-Known Juan Castro Blanco Park Prepares for Tourists

Construction is underway on new visitor facilities at Juan Castro Blanco National Park, a lesser-known protected area in northern Costa Rica, as officials work...

Study Counts More Than 557,000 Costa Rican Children in Poverty

A Conare study finds 557,193 minors in Costa Rica's social-aid registry are classified as poor, with Sarapiquí and the Southern Zone hit hardest.

Costa Rica Raises Mandatory Vehicle Insurance Rates for 2027

Anyone owning a car in Costa Rica will face higher mandatory insurance costs in 2027, with private vehicles, motorcycles and buses among the categories...

Landslide Forces Closure of Costa Rica’s Road to Limon Again

Heavy rain triggered a landslide on Route 32 late last night, forcing authorities to close the mountain crossing used by drivers traveling between San...

Pandora Closes All Five Stores in Costa Rica, Leaving Shoppers With Questions

Jewelry retailer Pandora has closed all five of its stores in Costa Rica, leaving customers wondering whether the popular Danish brand plans to reopen...
Loading…

Latest News from Costa Rica

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