Mexico's guayabera shirt fights for U.S. market

By Noel Randewich

MERIDA, Mexico, April 29 (Reuters) - Mexican makers of the guayabera shirt, elegant business wear across tropical areas of Latin America, are feeling the heat as Asian competitors grab more of the lucrative U.S. market.

A handful of factories have closed in recent years in the state of Yucatan, the home of Mexico's guayabera industry, as Asian producers copy the shirt and sell it at cut-rate prices in high-volume markets like Texas, California and Florida, business owners say.

"The arrival of guayaberas from Asian countries has lowered our production," said Lourdes Rodriguez, head of the clothing business chamber in Yucatan.

Characterized by front pockets, an open neck and rows of tiny pleats, the guayabera is everyday wear for businessmen and politicians in tropical areas of Latin America, from Mexico to Venezuela, where the heat makes business suits impractical.

Foreign sales of Yucatan's guayaberas, a small part of Mexico's $7 billion-a-year garment exports, have fallen about 20 percent in the past two years, the state government says, although reliable industry figures are unavailable.

Guayabera makers' difficulties mirror increased competition for all of Mexico's export manufacturers. In 2003, China overtook Mexico as the No. 2 exporter to the United States and replaced Canada in the top spot last year.

In the past decade, the guayabera, thought to have its origins in either Yucatan or Cuba, has become popular with Latin American grooms and guests at outdoor weddings. Loose-fitting and worn untucked, it is also a favorite for hiding bulging waistlines.

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