India’s Exports of the RMG to LAC (i.e. knit and woven apparel) showed an increase of 33.05% in 2005-06.  The LAC Region constituted a share of 1.78% in India’s Total RMG Exports.  RMG Exports to LAC constituted 4.64% share in India’s Total Exports to LAC Region in the year 2005-06. 

 In value terms, India’s Total Exports of RMG to the LAC Region in the year 2005-06 was to the tune of US$ 138.92 Million, which was US$ 104.41 Million in the year 2004-05.  India’s Exports to LAC Region during the last 10 years grew at a Compounded Annual Growth Rate of 7.01%.

 As per WTO figures of 2005, South and Central America constitute approximately 2% share in World Imports under the Regional Share in World Trade in Clothing.

 Mexico, part of the NAFTA – the North American Free Trade Agreement between USA, Canada and Mexico located in Central America is one of the dominating trading countries of LAC.  Other in .  The dominating trading countries of South America include Argentina, Brazil, Chile, Colombia, Venezuela, Guyana, Surinam, Peru, Bolivia, Ecuador, Paraguay and Uruguay are the other countries located in South America.   The Latin American & Caribbean Countries constitute a block of above South American Countries as well as Central American Caribbean Countries such as Antigua Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Cuba, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Montserrat, Nicaragua, Panama, St. KNA, St. Lucia, St. Vincent, Suriname, Trinidad & Tobago and Virgin Islands.

 Mexico is one of the leading Importing Countries of RMG in LAC Region.   The ensuing section provides information on Mexico’s Global Imports and Imports from India of RMG Garments.

 Table I : India’s Exports of RMG to Mexico

HS Chapter	Description	Value in Million US$       2004-05	Value in Million US$       2005-06	%age Growth	%age Share in India's Exports of RMG 2005-06
61	Knit Apparel	18.59	21.98	18.24	39.96
62	Woven Apparel	25.54	33.02	29.28	60.04
	Total for RMG	44.13	55	24.63	100
	%age Share of RMG in India's Total Exports to Mexico	11.97	12.41	3.68
	%age Share in India's Total Exports of RMG	0.75	0.70	-5.82
	India's Exports to Mexico	368.58	443.07	20.21
	India's Total RMG Exports	5906.7	7816.2	32.327

 Woven Apparel constitute nearly 60% share in India’s Exports of RMG to Mexico, and showed a growth of 29% in year 2005-06 as compared to previous year. Major Item of India’s Exports to Mexico under RMG was Blouses, Shirts & Shirts –Blouses of Cotton (HS Code 620630) with a total export value of US$ 10.59 Million showing a growth of 7.39% with a share of 18.89% in India’s Total RMG Exports to Mexico.

 Table II : Mexico’s Global Imports of Knit and Woven Apparel 

Rank in Mexico's Global Imports	Rank in Imports from India	HS	Description	Global Imports Value in Million US$		%age  Share in Mexico's Global Imports		% Change	Imports from India Value in Million US$		India's Percentage Share		% Change
				2004	2005	2004	2005	-  05/04  -	2004	2005	2004	2005	-  05/04  -
26	7	61	KNIT APPAREL	1274.65	1180.84	0.65	0.53	-7.36	25.63	29.90	2.01	2.53	16.66
29	6	62	WOVEN APPAREL	1153.52	1131.77	0.59	0.51	-1.89	37.61	47.43	3.26	4.19	26.12
			Total for RMG	2428.17	2312.60	1.24	1.04	-4.76	63.24	77.33	2.60	3.34	22.29
%age Share of Knit Apparel in Total RMG Imports				52.49	51.06			-2.73	40.53	38.66			-4.60
%age Share of Woven Apparel in Total RMG Imports				47.51	48.94			3.02	59.47	61.34			3.14

 Knit apparel constitute a major share in Mexico’s Total RMG Imports whereas In Imports from India Woven Apparel constitute major share (61%).  The share of Woven Apparel has increased by 3% in the current year i.e. 2005 in Mexico’s RMG Global Imports however, in case of Knit Apparel Imports from India, the share has shown a decline of nearly 5% in the year 2005 as compared to previous year. 

 Table III : Major Supplier Countries to Mexico for RMG

Rank	Country	Value of Imports in Million US$			% Share			% Change in Imports Value	%age Change in Share
		2003	2004	2005	2003	2004	2005	2005/ 2004	2005/ 2004
0	-- World --	2888.31	2428.17	2312.60	100.00	100.00	100.00	-4.76	0
1	USA	1863.78	1336.55	1064.76	64.53	55.04	46.04	-20.33	-16.35
2	Hong Kong	245.81	138.98	162.27	8.51	5.72	7.02	16.76	22.59
3	Spain	117.04	89.28	91.65	4.05	3.68	3.96	2.65	7.78
4	Colombia	48.28	74.53	91.11	1.67	3.07	3.94	22.25	28.36
5	Italy	73.76	78.53	79.86	2.55	3.23	3.45	1.70	6.78
6	India	57.61	63.24	77.33	1.99	2.60	3.34	22.29	28.40
7	Indonesia	34.94	82.20	77.30	1.21	3.39	3.34	-5.96	-1.27
8	Korea, South	54.81	63.22	59.04	1.90	2.60	2.55	-6.60	-1.94
9	Portugal	24.00	42.57	47.76	0.83	1.75	2.07	12.19	17.79
10	China	35.32	40.03	42.88	1.22	1.65	1.85	7.12	12.48
	Total for Top 10	2555.36	2009.13	1793.97	88.47	82.74	77.57	-10.71	-6.25

 The above tabulation shows that India’s Share has more than doubled in two years.  Imports from India’s had highest growth rate. India’s major competitor China’s share has declined by nearly 6% in the year 2005 as compared to previous year.  Share of USA has also showed a decline of 16% in the year 2005 as compared to previous year.  In value terms also Imports from USA showed a decline of 20%. 

Analysis of Specific RGM Items at the 6 Digit HS Code Level in Mexico’s Global Imports and Imports from India

 An analysis of 6 Digit Items, which fall under Knit Apparel and Woven Apparel, has been provided to give an insight of the major items of Global Imports and Imports from India and Potential Items where India can increase its share. 

 Top 10 RMG Items in Mexico’s Global Imports and Top 10 in Imports from India

Rank in Global Imports of RMG	Rank in Imports from India	HS	Descrip-tion	Mexico's Global Imports 2005	% Share in Mexico's Global Imports of RMG 2005	% Change 2005/  2004	Global Imports AIUV 2005	Unit of Measurement	Imports from India 2005	%age Share of India 2005	% Change 2005/ 2004	Imports from India AIUV 2005	India's Global Exports 2005	Potential Trade
1	49	611030	JERSEYS ETC OF MANMADE FIBRES	202.55	8.76	17.82	3.08	/PZA	1.16	0.57	-47.61	5.32	12.93	11.78
2	40	610910	COTTON	179.11	7.75	-6.19	1.73	/PZA	6.16	3.44	11.05	3.78	1030.14	172.95
3	44	620462	TROUSERS,ETC,COTTON	130.49	5.64	-15.79	6.5	/PZA	2.19	1.68	-7.91	4.38	188.18	128.31
4	47	620342	TROUSERS,ETC, COTTON	120.64	5.22	2.99	8.04	/PZA	1.67	1.38	16.45	5.58	309.64	118.97
5	45	611020	COTTON	90.77	3.93	-49.75	2.87	/PZA