U.S. textile companies used to be divided over the North American Free Trade Agreement (NAFTA), which put Mexico into a trading bloc with the United States and Canada 23 years ago.
Now they like it, for the most part, even as the new president, Donald Trump, threatens to cancel it.
As it turned out, a provision of NAFTA called the “yarn forward” rule led to a symbiotic relationship between textile mills that manufacture yarn and fabric in the United States and cut-and-sew operations in Mexico that turn fabric into consumer products such as clothes and ship it to U.S. retailers. Full Article
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