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• Textile industry
• Jul 04, 2025
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How do international treaties affect the textile trade?

The international textile trade is one of the most dynamic in the world and is deeply influenced by multilateral and bilateral agreements that define the rules of the game between countries. 

Free trade agreements (FTAs), customs unions, and other regulatory frameworks not only affect tariffs but also technical standards, origin requirements, and sustainability policies. For companies in the sector, understanding these agreements is key to competing efficiently and expanding markets.

1. Reduction of tariffs and logistics costs

One of the most obvious impacts of the treaties is the reduction or elimination of tariffs on the import and export of textile products. This allows manufacturers to access cheaper raw materials and place their products in new markets with greater competitiveness. For example, countries such as Mexico, through the USMCA, have achieved significant tariff advantages in trade with the US and Canada.

2. Rules of origin: opportunities and restrictions

Treaties often include rules of origin that determine when a product qualifies for the benefits of the agreement. In the case of textiles, this may include the type of yarn, the country where the dyeing or manufacturing takes place. These rules are decisive for accessing tariff preferences, but they can also limit operations when raw materials come from third countries outside the treaty.

3. Access to new markets

Treaties also open up opportunities for geographical expansion for manufacturers and distributors. Textile companies that were previously restricted to their local markets can now export products under more favorable conditions. This has been key to the growth of many textile SMEs in Latin America, Southeast Asia, and Africa.

4. Technical standards and sustainability

In addition to trade, many modern treaties include clauses on sustainability, working conditions, and technical standards. This means that companies must adapt their processes to specific regulations if they wish to operate under these agreements. Although this may involve an initial investment, it also represents an opportunity for modernization and differentiation.

5. Protection against anti-dumping measures and non-tariff barriers

Treaties also offer dispute resolution mechanisms and protection against unfair trade barriers, such as dumping practices or restrictive quotas. This provides greater legal certainty for exporters and allows for long-term planning without regulatory surprises.

In conclusion, international treaties are not just a legal framework: they are strategic tools that can impulse or slow down the development of the textile sector, depending on how they are understood and used. For companies such as ITG Group, being aware of current agreements and their implications is part of the commitment to offer competitive, accessible solutions adapted to each market.