Living in Peru : your everyday companion

Peru has the lowest labor cost of the textile industry in Latin America, being listed among the 15 lowest-cost countries in the world, according to Werner International Management Consultant study, stated today Scotiabank.

Scotianbank reported that the export textile sector has important strengths, such as the quality of raw material, free access to the United States, qualified work at a low cost, proximity to the North American market and vertical integration.

In addition, Peruvian business leaders have improved their answering capabilities, which has helped to place Peru as a textile supplier in emergency situations, specialized on sending small-scale exports.

However, he stressed that the quality of most Peruvians textiles allows them to compete at premium levels in the North American market, where price is a less decisive factor.

Besides, Scotiabank reported that the Textile Committee of the National Industry Society (SNI) estimates that textile investments would reach 200 million dollars in 2008, 35 percent higher than in 2007.

The bank warned that a medium term risk is Venezuela's departure from the Andean Community (CAN).

“Venezuela is currently the second destination market for Peruvian exports, representing 400 million-dollar sales in 2007”.

After Venezuela's departure from the CAN, free access will be eliminated, however according to current Andean law, these benefits will prevail for five more years.

News source: ANDINA