Lessons from the Dominican Republic

(March 2007) Although price remains the main factor in sourcing decisions, brands are also concerned with guaranteeing that their products reach stores at the right time. According to brand representatives, instability in different countries also motivates brands to keep work in different countries located in different regions. For brands selling in the US market, it is quite likely that their strategies first divide suppliers into two big categories: Asia/Americas. 

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Canadian t-shirt manufacturer Gildan Activewear is closing two factories in Mexico, two Montreal textile plants and a cutting operation in New York. An estimated 1,365 Mexican and 465 Canadian and U.S. workers will be laid off. Workers at the Mexican factories were particularly hard hit, as the region is already reeling from Hanesbrands' laying-off of 1,700 workers in December 2006. With MSN’s assistance, our local Mexican partner organization in Monclova, SEDEPAC, put forward a series of proposals to Gildan.

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Coming ten months after the demise of the Multi-Fibre Arrangement (MFA), the Asia-Latina Women's Exchange was designed to give participants an opportunity to share what the end of the import quota system has meant for workers and communities in Thailand, China/Hong Kong, Cambodia, Honduras, Guatemala, Mexico and the Dominican Republic and to discuss strategies for better defending workers' rights in a post-quota industry.

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The US-Central America Free Trade Agreement (CAFTA) was signed on May 28, 2004 by the U.S., Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. On August 15, 2004 the Dominican Republic was incorporated into the agreement. Read about its anticipated effects on the Central American garment industry. PDF Format

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