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 Proposes 15% Tax on Certain Foreign Income

Costa Rica has proposed a 15% tax on certain passive income earned abroad, including interest, dividends, rents and capital gains. The measure is not yet law

Costa Rica Changes Route 1 Traffic Pattern Near San Ramón

Drivers using Route 1 between the Central Valley and Puntarenas is facing a new traffic pattern today as construction continues around San Ramón. The...

Is Living in Costa Rica Without a Car Really Possible?

To car or not to car, that is the question. Can you live happily in Costa Rica without the convenience of an automobile? The...

Costa Rica El Niño Plan Warns of Major Water Supply Risks

Costa Rica is preparing for possible water shortages affecting hundreds of thousands of people as the strong El Niño weather pattern continues to reduce...

Water Rationing Hits 74 Communities as El Niño Dries Out Costa Rica’s Pacific Side

If you live on Costa Rica's northern Pacific side, your tap may already be running on a schedule. Community water systems in 74 communities...

Dollar Rebounds From Record Low but Year-End Could Favor the Colón Again

The dollar hit its highest level since June after a record low, but seasonal inflows could push it back down. Here is what banks are paying.

Costa Rica Expands Yellow Fever Vaccine Rule to Eight More Countries

Costa Ricans and legal residents planning trips to several parts of South America and the Caribbean need to check their vaccination records before heading...

Used-Car Importers Take Costa Rica’s New Vehicle Tax Formula to Court

Costa Rica's used-car importers will challenge in court a Hacienda decree they say doubles or triples import taxes. The ministry cites evasion.

Costa Rica Turns to Bryan Ruiz After Firing Fernando Batista

Former Costa Rica captain Bryan Ruiz will take temporary charge of the national team after the Costa Rican Football Federation fired Argentine coach Fernando...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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