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Mexico woos CNMI garment makers
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Posted on Jan 22 1999
Gov. Pedro P. Tenorio admitted yesterday the Northern Marianas is not yet ready for the departure of the half-a-billion-dollar garment industry amid plans of several apparel manufacturers to relocate beginning year 2002 ahead of the implementation of the General Agreement on Tariffs and Trade.
Some members of the industry say they foresee an exodus of garment firms in preparation for the lowering of trade barriers by the World Trade organization in year 2004.
Plans of garment manufacturers to move to some parts in Asia or Latin America come in the wake of a $1 billion in lawsuits filed against retailers and buyers for alleged exploitation of foreign workers.
Industry sources say in Mexico, for example, the government is offering land and infrastructure for free to attract them into establishing garment factories.
“How can we be ready? We don’t have natural resources,” the governor said.
The downturn in tourism industry, the backbone of the island economy, has made the garment sector the main provider of revenues to the financially-troubled government since last year, when the mighty economies of Asia collapsed due to a region-wide financial strife.
To deal with the economic slump brought about by poor tourist arrivals, as well as the impending departure of garment makers, the government has created an Economic Recovery and Revitalization Task Force, which is now drafting plans to diversify the fragile economy.
The task force is hoping to establish free trade zones on Saipan, Rota and Tinian by the end of the year by offering a package of incentives to potential investors.
