PANAMA: TEXTILE & APPAREL STATISTICS

UNCLAS PANAMA 002282 SIPDIS SIPDIS FOR STATE/EB/TPP/ABT THOMAS LERSTEN FOR STATE WHA/CEN ELIA TELLO FOR STATE WHA/CEN FOR COMMERCE/ITA/OTEXA MARIA D'ANDREA FOR USTR ABIOLA HEYLIGER E.O. 12958: N/A TAGS: ECON ETRD KTEX SUBJECT: PANAMA: TEXTILE & APPAREL STATISTICS REF: STATE 138090 ¶1. The following comes from the Comptroller General's Office of the Republic of Panama unless otherwise noted: - Total industrial production: full year 2005: $1,118,452,300; first 6 months 2006: $596,476,000 - Total textile & apparel production: full year 2005:5,034,837; first 6 months 2006: $2,422,206 - Textile/Apparel share of Panama's imports & exports: full year 2005: 0.106%; first 6 months: 0.085% - Exports in textiles & apparel to the United States: full year 2005: $2,280,206; first 6 months 2006: $705,454 - Total manufacturing employment: full year 2005: 41,213 (2.93% of total labor force); first 3 months 2006: 43,603 (3.09% of total labor force) - Total textile & apparel employment: full year 2005: less than 10,000 ¶2. Panama has a greatly diminished textile/apparel industry. Since 2000, approximately 18 textile/apparel manufacturers have closed. Employment in the sector has been reduced from approximately 26,000 workers in 1996 to less than 10,000 in ¶2006. The remaining Panamanian textile/apparel industry manufactures principally school and work uniforms, and guyabera (traditional male shirts). ¶3. International competition, particularly from Asia and other Central American countries, along with a lack of capital investment in modernizing manufacturing facilities are the principal causes for the deterioration of the Panamanian textile/apparel industry. Industry labor sources told EconOff that Panama has lost manufacturing facilities to countries such as Honduras and El Salvador because of more flexible labor laws. EATON