Blog: Leonie BarrieHonduras continues to hurt

Leonie Barrie | 29 October 2009

Four months after the political upheaval that saw the Honduran president forced into exile, the country seems no nearer to finding an end to the dispute.

Talks between ousted Honduran President Manuel Zelaya and the country’s new interim government are making little progress, and until a settlement is reached the political crisis looks set to continue to affect trade across Central America.

The situation isn’t helped by the mixed messages being broadcast about the country’s apparel industry. While Honduran suppliers continue to say that there has been no impact whatsoever on business, trade groups representing US textile firms, retailers and importers are painting a very different picture.

In a letter to Secretary Hillary Clinton they say the situation is causing permanent damage to what once was the most economically vibrant textile and apparel trade platform in the CAFTA region.

US  imports of apparel from Honduras are down 39% in September they warn, credit is at a record low, and there are “increased plant closures, job losses and the crippling of a once booming trade sector.”

It’s hard to tell whether these changes are due to buyer concerns with political stability, or more simply a symptom of disappearing raw material facilities, regional uncompetitiveness, or China’s growing ability to provide fast response in smaller quantities.

But what is true is that while uncertainties regarding the political situation in Honduras are still hanging in the air, buyers will always be cautious about doing business there.

Yes, having a balanced supply chain is a fundamental rule of sourcing, and most firms are constantly assessing their production, but until the US clarifies its stance on the situation in Honduras, the impact on the region as a whole will continue to reverberate for a long time to come.


BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

BLOG

Trump trade policies and China tensions top concerns

This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...

BLOG

Happy New Year – and a first look at 2017

Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....

BLOG

New re:source to help unravel sourcing decisions

Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...

just-style homepage



Forgot your password?