Key Takeaways

•   The USMCA is a free trade agreement between the US, Mexico, and Canada that ensures free trade between the three countries

•   As a result of this agreement, Mexican apparel exporters have seen rising export to the US

•  The agreement has led to improvement in working conditions in the Mexican apparel market, leading to trust-building and increased recognition for Mexican apparel

•   The threat of tariffs from the US government has the potential to disrupt Mexican apparel exporters’ business, however.

•   Nonetheless, the apparel export market in Mexico is climbing due in part to the USMCA

Introduction

Mexico is among the biggest apparel exporters in the world, ranking among the top 10. With strong trade ties with its fellow North American countries, the US and Canada, the apparel export industry in Mexico has room to flourish even further.

These strong trade ties with the US and Canada are exemplified by the USMCA trade agreement. Ever since coming into effect in 2020, this agreement has bolstered the Mexican apparel market, improving business opportunities for exporters as well.

Below we expound on how Mexican apparel export has thrived post-USMCA. But first,

What is USMCA?

USMCA stands for the Agreement between the United States of America, the United Mexican States, and Canada. It is a free trade agreement among the three most dominant nations in North America and supersedes the previous agreement between the nations, the North American Free Trade Agreement (NAFTA).

It came into effect in July 2020 and has since then led to a widening of opportunities in various Mexican sectors, including apparel. The agreement aims to improve working conditions for textile laborers and ease the inflow and outflow of goods among the three nations.

How Has the USMCA Been Beneficial to Mexican Apparel Exporters?

•   Improvement in working conditions and fair wages for textile workers, leading to more trust being placed in Mexican apparel and apparel exporters.

•   Trade with the US has flourished: Mexico was the largest source of goods imported into the US in 2024. (source)

•   Textile export out of Mexico to US has thrived since the agreement, with Mexico responsible for $5.53 billion textile import in the US in 2024, the fifth largest of any nation. (source)

•   More favorable place of origin rules have led to increase in exporters’ goods qualifying for duty-free imports in Canada and the US.

•   The export of specific apparel goods has also become significant, with the US importing $1.79B worth of non-knit or crocheted apparel in 2024 from Mexico. (source)

Mexican Apparel Export Since USMCA Came into Effect

The following table chronicles the total export of apparel & textile from Mexico in the aftermath of the agreement taking effect.

(Source)

This table clearly highlights the increasing capacity of Mexican apparel exporters since the agreement came into effect. Even though the figures are for the world as a whole, they demonstrate the impact of the agreement as the US is Mexico’s top exporting nation, while Canada is also among the top five.

Major Positive Signs for Mexican Apparel Exporters Since the USMCA Came into Effect

•   In 2023, the value of textile & apparel exports from Mexico went up by 8% compared to 2022. (source)

•   In December 2023, total exports increased by 68% compared to the same month in 2022.

•   Exports of carpets grew by 40% from January to December 2023.

Dark Clouds on the Horizon: How the Mexican Textile Market Has Already Suffered in 2025 So Far

In 2025, the Trump administration of the US imposed a 25% tariff on textile & apparel imports from Mexico. This was counter to the spirit of the USMCA, where the focus was on reducing duties and tariffs. With Mexico, in retaliation, imposing tariffs of its own on US goods, the Mexican apparel market faced concerns.

Even with the postponement of the tariffs, there were still looming threats and a feeling of uncertainty among Mexican apparel manufacturers and exporters. This was compounded by Mexico’s apparel exports decreasing by 14.3% in the first quarter of 2025 as compared to last year.

Not All is Bleak: Hopes for the Future

Shortly after announcing the tariffs, the US postponed its tariffs on Mexican textile & apparel imports. This allowed for normal trade activities to resume for Mexican exporters, going back to the much-freer rules of the USMCA agreement.

The Mexican president Claudia Sheinbaum acknowledged the role of the USMCA in helping the tariff situation be sorted out in Mexico’s favor. (source) With measures being taken by organizations like the Mexican National Chamber of the Textile Industry (CANAINTEX) to make sure that no exporters circumnavigate duties and tariffs, Mexican exporters are enjoying greater trust in the global textile market.

Conclusion

In the aftermath of the USMCA agreement, Mexican apparel exporters have seen a growth in opportunity. However, the constant threat of tariffs means they have to remain on their toes as they navigate the global textile trade scenario.

For these exporters, TexPro is the ideal tool to keep track of import-export changes. The tool has vast amounts of import-export data, accounting for a wide number of goods. The tool also helps exporters keep track of duties and tariffs for their exports.

What’s more, to ease the analysis of Mexican users, the tool is also available in Spanish. Hence, Mexican exporters can understand the market through terms applicable and understandable to them. Through Spanish language access, TexPro has taken another step in easing the analysis and decision-making process of Mexican apparel industry players.