Tariffs could make big brands think again
19/06/2008
An expert in global trade agreements at the Guadalajara office of legal firm Baker & McKenzie has claimed that the new tariff regime imposed on imports into Mexico from China could force major athletic footwear brands to review their global manufacturing strategies.
Edmundo Elías Fernández has told local media that the new tariff set-up the Mexican footwear industry negotiated at the start of this year could make it too expensive for Mexican retailers to stock shoes from major brands such as adidas, Puma and Nike.
"It depends on whose perspective you take," he said. "If you're adidas or Puma or Nike, it's going to put you off manufacturing all your shoes in China. But if you're a Mexican footwear producer, there could be benefits."
Tariffs on imports from China were to vanish at the start of 2008, but industry protests encouraged the government to think again. The set-up now makes it almost impossible for an agent or retailer to bring footwear into Mexico for a lower price than it would cost to take stock from local manufacturers.
Share this story:
