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