Geography

Location: Middle America, bordering the Caribbean Sea and the Gulf of Mexico, between Belize and the US and bordering the North Pacific Ocean, between Guatemala and the US
Geographic coordinates: 19 26 N, 99 08 W

Map references: North America Region: Latin America, Caribbean Area: total: 1,972,550 sq km land: 1,923,040 sq km water: 49,510 sq km Area - comparative: slightly less than three times the size of Texas Land boundaries: total: 4,353 km Border countries: Belize 250 km, Guatemala 962 km, US 3,141 km Terrain: high, rugged mountains; low coastal plains; high plateaus; desert Natural resources: petroleum, silver, copper, gold, lead, zinc, natural gas, timber

Weather
The country of Mexico passes through the Tropic of Cancer. Thus, the country is separated into a temperate zone and a tropical zone. Northern areas generally experience a cooler climate than those in the southern areas, especially during the winter.Mexico is a big country and so the weather depends on where you are; though it is largely sunny all year round. If youre in the north, the temperatures are fairly cool. The east coast on the other hand has tropical weather similar to that of the Caribbean. Mexico has two seasons, dry and wet. The peak of the dry season is from February to July; southern areas of Mexico are best avoided at this time. Meanwhile, the rainy season is typically around June to October. During this time, the coast areas experience the most rainfall. Since the country lies in the hurricane belt, coastal areas experience hurricanes during the winter.

Politics
The United Mexican States are a federation whose government is representative, democratic and republican based on a congressional system. The constitution establishes three levels of government: the federal Union, the state governments and the municipal governments. All officials at the three levels are elected by voters through first-past-the-post plurality, proportional representation or are appointed by other elected officials.

Demographics
Population: 109,955,400 (July 2008 est.) Age structure: 0-14 years: 29.6% (male 16,619,995/female 15,936,154) 15-64 years: 64.3% (male 34,179,440/female 36,530,154) 65 years and over: 6.1% (male 3,023,185/female 3,666,472) (2008 est.) Median age: total: 26 years Life expectancy at birth: total population: 75.84 years

Ethnic Heritage
Nationality: noun: Mexican(s) Ethnic groups: mestizo (Amerindian-Spanish) 60%, Amerindian or predominantly Amerindian 30%, white 9%, other 1% Religions: Roman Catholic 76.5%, Protestant 6.3% (Pentecostal 1.4%, Jehovah's Witnesses 1.1%, other 3.8%), other 0.3%, unspecified 13.8%, none 3.1% (2000 census) Languages: Spanish, various Mayan, Nahuatl, and other regional indigenous languages Literacy: definition: age 15 and over can read and write total population: 91% male: 92.4% female: 89.6%

Government
Country name: conventional long form: United Mexican States Conventional short form: Mexico Government type: Federal Republic Capital name: Mexico (Distrito Federal) Administrative divisions: 31 states (estados, singular - estado) and 1 federal district* (distrito federal); Aguascalientes, Baja California, Baja California Sur, Campeche, Chiapas, Chihuahua, Coahuila de Zaragoza, Colima, Distrito Federal*, Durango, Guanajuato, Guerrero, Hidalgo, Jalisco, Mexico, Michoacan de Ocampo, Morelos, Nayarit, Nuevo Leon, Oaxaca, Puebla, Queretaro de Arteaga, Quintana Roo, San Luis Potosi, Sinaloa, Sonora, Tabasco, Tamaulipas, Tlaxcala, Veracruz-Llave, Yucatan, Zacatecas Executive branch: chief of state: President; Enrique Pea Nieto note - the president is both the chief of state and head of government

Enrique Pea Nieto is the 57th president of Mexico. His six-year term began in 2012.

Flag description: three equal vertical bands of green (hoist side), white, and red; the coat of arms (an eagle perched on a cactus with a snake in its beak) is centered in the white band

Culture
Mexican culture reflects the complexity of the country's history through the blending of preHispanic civilizations and the culture of Spain, imparted during Spain's 300-year colonization of Mexico. Exogenous cultural elements mainly from the United States have been incorporated into Mexican culture. As was the case in most Latin American countries, when Mexico became an independent nation, it had to slowly create a national identity, being an ethnically diverse country in which, for the most part, the only connecting element amongst the newly independent inhabitants was Catholicism.

Economy
Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements

Currency
Currency (code): Mexican peso (MXN) Currency code: MXN

Exports
Exports: $267.5 billion f.o.b. (2007 est.) Exports - commodities: manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton Exports - partners: US 84.7%, Canada 2.1%, Spain 1.3% (2006)

Imports
Imports - partners: US 50.9%, China 9.5%, Japan 6%, South Korea 4.2% (2006) Imports: $279.3 billion f.o.b. (2007 est.) Imports - commodities: metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft part

Imported Tariffs
Textile and apparel goods manufactured in the United States enter Mexico duty free under the North American Free Trade Agreement (NAFTA) if they qualify under the rules of the Agreement. Products from the United States that do not qualify under the NAFTA rules are subject to Mexico's MFN rates of duty. Mexico applies percent ad valorem duties on the c.i.f. (cost, insurance and freight) value of imports. Mexico: Ad valorem tariffs on Textiles, Apparel, Footwear and Travel Goods HS Chapter/Subheading Yarn -silk -wool -cotton -other vegetable fiber -man-made fiber ........................ Woven Fabric -silk -wool -cotton -other vegetable fiber -man-made fiber ........................ Knit Fabric ........................ Non Woven Fabric ........................ Industrial Fabric ........................ Apparel ........................ Home Furnishings including: bed, bath, kitchen linens, etc. ........................ Carpet Footwear Travel Goods 5003-5006 5105-5110 5204-5207 5306-5308 5401-5406/5501-5511 Tariff Rate Range (%)

0 - 10 0 - 10 10 0 - 10 0 - 10

5007 5111-5113 5208-5212 5309-5311 5407-5408/5512-5516 60 5603 59 61-62 63

10 10 10 10 - 15 10 0 - 10 10 0 - 10 20 - 25 10 - 25

57 64 4202

15 0 - 30 20 - 25

Transitional Issues
US border region has ameliorated periodically strained water-sharing arrangements; the US has intensified security measures to monitor and control legal and illegal personnel, transport, and commodities across its border with Mexico. Trafficking in persons: current situation: Mexico is a source, transit, and destination country for persons trafficked for sexual exploitation and labor. women and children are trafficked from rural regions to urban centers and tourist areas for sexual exploitation, often through fraudulent offers of employment or through threats of physical violence; the Mexican trafficking problem is often conflated with alien smuggling, and frequently the same criminal networks are involved; pervasive corruption among state and local law enforcement. Mexico remains on the Tier 2 Watch List for the third consecutive year based on future commitments to undertake additional efforts in prosecution, protection, and prevention of trafficking in persons, and the failure of the government to provide critical law enforcement data. Illicit drugs: major drug-producing nation. government conducts the largest independent illicitcrop eradication program in the world; continues as the primary transshipment country for USbound cocaine from South America, with an estimated 90% of annual cocaine movements towards the US stopping in Mexico; major drug syndicates control majority of drug trafficking throughout the country; producer and distributor of ecstasy; significant money-laundering center; major supplier of heroin and largest foreign supplier of marijuana and methamphetamine to the US market.

What is the level of industrial development? Textile and Apparel Industries-The

textile and apparel production is located mainly in the central and northeastern part of the country. The states where 80% of the textile and garment production are concentrated include Distrito Federal, Estado De Mxico, Hidalgo, Jalisco, Puebla, San Luis Potos, and Tlaxcala. Other states that are emerging as important textile and garment production centers are Guanajuato, Michoacn, Morelos, Tamaulipas, and Yucatn

What are the Demographics and psychographics of the labor force?

Mexico, selected international labor statistics, 201012

Indicator Hourly compensation costs in manufacturing Hourly compensation costs Hourly direct pay Hourly social insurance expenditures and labor-related taxes Labor market Unemployment rate - Total Percent of civilian labor force HTM HTM HTM HTM HTM HTM HTM HTM HTM HTM HTM XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS XLS 5.4 10.1 5.5 5.4 54.5 72.3 38.5 57.6 76.5 40.7 37.3 5.3 10.2 5.3 5.3 54.8 72.4 39.0 57.8 76.4 41.2 37.5 5.1 9.9 5.0 5.1 55.4 72.8 39.9 58.4 76.7 42.0 38.0 U.S. dollars U.S. dollars U.S. dollars HTM HTM HTM XLS XLS XLS 6.14 4.30 1.84 6.49 4.54 1.95 6.36 4.45 1.92 Unit Time Report Series 2010 2011 2012

Unemployment rate - Youth (under Percent of civilian labor force 25) Unemployment rate - Men Unemployment rate - Women Employment-population ratio Total Employment-population ratio Men Employment-population ratio Women Labor force participation rate Total Labor force participation rate Men Labor force participation rate Women Women's share of the labor force Percent of civilian labor force Percent of civilian labor force Percent of civilian workingage population Percent of civilian workingage population Percent of civilian workingage population Percent of civilian workingage population Percent of civilian workingage population Percent of civilian workingage population Percent of civilian labor force

SOURCE: U.S. Department of Labor, U.S. Bureau of Labor Statistics, Division of International Labor Comparisons.

What are the political orientations? The United Mexican States are a federation
whose government is representative, democratic and republican based on a congressional system. The constitution establishes three levels of government: the federal Union, the state governments and the municipal governments. All officials at the three levels are elected by voters through first-past-the-post plurality, proportional representation or are appointed by other elected officials. Enrique Pea Nieto is the 57th president of Mexico. His six-year term began in 2012.

What is the role in world trade of textiles and apparel? The North American
Free Trade Agreement (NAFTA) is a trade agreement among the United States, Canada, and Mexico that liberalizes restrictions on trade among the three countries. Under the NAFTA, U.S. textile Under the NAFTA, qualifying U.S. textile, apparel, footwear, leather and travel goods enter into Canada and Mexico duty-free.

What types of trade barriers and incentives are in effect?

The incentives Mexico has an IVA or VAT (value added tax) on most sales transactions, including sales of foreign products. The VAT is 11 percent for products staying in the Mexican border region and 16 percent for products going to the interior of Mexico. The VAT is assessed on the c.i.f. value for non-NAFTA products whereas the VAT for NAFTA qualifying products is assessed on the FOB value. The VAT may be waived for imports by a manufacturing plant registered under an approved Mexican government program (e.g., maquila plant). Silk or leather clothing items (except for shoes) pay a 5-percent luxury tax in addition to the VAT. U.S. goods entering Mexico do not have to pay this 5 percent luxury tax when their product is purchased by a business.

What type of textiles/ apparel are produced, exported and imported?

(See import and export charts above) Mexico is widely known for its handmade textiles there are two well-known textiles which are Otomi textiles are meticulously embroidered textiles created by the Otomi Indians of several Mexican states east of Mexico City. Otomi textiles as fabric are turn into pillows, table runners, headboards, ottomans, duvet covers, chair upholstery as well as, Chiapas textile are woven are produce in Mexico.

What types of technology are in use for textiles and apparel?

The use of

spinning mills, raiper looms cutting machines for embroidery and lace, covering yarn and weaving machinery are all use to manufacture and apparel.

What is the nature of wholesale and retailing systems?

Within the distribution sector which includes both retail and wholesale trade; the traditional retail structure in Mexico is due to sourcing systems that are shaped by the nature of regional trading regimes in which they operate.

What are the contributions to sustainability of supply chain management? The supply chain for textiles and apparel has become increasingly global, to
include North America, Latin America, Europe, Africa and the Asia Pacific region. Customers, suppliers, manufacturers, and assemblers are located throughout the world, and represent new potential partners for U.S. firms looking to expand abroad.

What are the advantages and disadvantages of involvement in the textile/apparel business in this region/country? Some advantages of
involvement within Mexico are policies of NAFTA. This is an important advantage for two reasons. It is an incentive for these countries to nurture their domestic producers. But it also prevents one country from exporting goods within North America that are purchased from another country outside North America. The policy prevents a loophole that could effectively remove tariffs on goods other than those produced in North America. Other advantages are NAFTA decreased tariffs, all three countries experienced real wage increases, and, NAFTA increased trade between the U.S., Mexico and Canada.

The North American Free Trade Agreement ("NAFTA") is a 1994 agreement between the United States, Canada and Mexico that lifted many restrictions on the imports and exports of agricultural products between these three nations.

In contrast, the disadvantages are NAFTA lift tariffs not relegations, (NAFTA may have eliminated tariffs between the U.S., Canada and Mexico, but it didn't do away with the numerous customs regulation that can stifle trade) and, Mexican Workers Have Benefited Less Than Expected (While NAFTA encouraged significant U.S. investment in Mexico, much of that investment has been in the form of factories near the border that are called maquiladoras, where Mexican workers provide cheap labor to produce U.S. goods. This arrangement has fallen short in its goal of increasing the size of Mexico's middle class because Asian labor has proven to be cheaper).