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H&M, Forever 21 Under Pressure to Source in Mexico

Leading fashion brands H&M, Forever 21 and American Eagle Outfitters are under fire by Mexico’s National Chamber of Industry Apparel (CANAIVE) for entering the Mexican market, but allegedly refusing to source garments in the country. At the 38th National Congress of the Garment Industry earlier this month in Guadalajara, CANAIVE president Sergio Lopez de la Cerda said the brands have “generated a decomposition of the Mexican market.”

According to CNN, Lopez de la Cerda said, “They have put a lot of pressure on the National Association of Supermarkets and Department Stores, because they are introducing a product that competes with them in circumstances of unequal trade.” He added that the brands have produced few jobs and have provided no benefit to Mexico’s garment industry.

Undersecretary of industry and trade of the Ministry of Economy, Rogelio Garza has agreed to mediate between CANAIVE and the brands, CNN reported. Garza also announced a program to help develop the garment industry and improve marketing strategies for suppliers of domestic products.