Savvy Garmets and Grupo Textil, Business Alliance

SAVVY GARMETS AND GRUPO TEXTIL, BUSINESS ALLIANCE

The company Savvy Garments wants to invest in Mexico and open a sewing factory to make its products, besides that it wants to make a commercial alliance with Grupo TextilMex to be its textile supplier for its clothing line.

Now Savvy Garments wants to know more about the country where it is going to invest.

Political System:

Mexico is governed by a Rule of Law, that is why the government is divided into three powers that serve so that no character or institution can have total control of the country:

Executive (President and Governors): It is who manages public resources so that they can be translated into benefits for the inhabitants of the country.

Legislative (Congress of the Union and State Congresses): It is mainly responsible for making laws.

Judicial: He oversees enforcing the laws.

Economic System:

The Mexican economic system is divided into three sectors:

Primary sector: what is the extraction of raw material.

Secondary sector: which is the transformation of the raw material.

Tertiary sector: what is trade and services.

Government regulations that apply to that industry:

The Secretaries of Finance and Economy, announced the three axes that the government will operate to return to the textile and clothing sector more competitive and productive.

The three axes announced by both Secretariats were: support for innovation, quality and competitiveness; Customs measures against unfair competition and new financing products for entrepreneurs in the sector.

How is the Mexican peso doing?

Currently the Mexican peso is not very stable, after the renegotiation of the FTA with the United States.

The peso registered a slight gain of 0.4% to settle at 19.16 per dollar, but in just 40 minutes it depreciated 1.28% and fell to 19.41 per dollar.

Mexico’s culture:

We Mexicans are accustomed to negotiating with many other cultures, we adapt to the environment and negotiations.

As a consultant in international relations, I know very well the way of working with the Asians, especially with the Chinese.

Mexican employment practices, minimum wage and the role of labor unions:

Here in Mexico we like to work with benefits according to the law, and according to the union.

The rules for workers are very simple.

They have a very closed mentality, if I work more they pay me the same thing that if I work less, it is necessary to encourage the work to increase the production.

Mexico’s trade policy details that are relevant to that industry

To export, Mexico does not add any taxes to the textile product, if it is not leather.

Besides, no tariff is added if there is a treaty with some country.

That is our objective, to convince the Savvy Garments company to work with Grupo Textil, and thus convince the Republic of China to create a commercial link with Mexico to benefit both companies.