Overview
- The government formalized the measure on Thursday by publishing Supreme Decree No. 014-2026-PRODUCE, which puts the textile and apparel sector in national emergency for 120 calendar days.
- Produce must approve a Sector Reactivation Plan within 15 business days that is organized around four action lines: financing, capacity and productivity building, MYPE access to public procurement, and market promotion.
- Official technical data in the decree show a 9.9% drop in production from January to July 2026 and a 58.4% rate of capacity use, underscoring rapid near‑term decline on top of longer-term losses since 2018.
- The decree explicitly cites ENFEN forecasts of continued anomalous sea warming through autumn 2027 as a climate risk that could disrupt supply chains, damage infrastructure and shift demand for clothing.
- The sector comprises over 47,000 formal firms, about 99.4% of which are micro and small enterprises, and media reports list measures such as a temporary credit guarantee and specialized technical help that still require formal details in Produce’s plan.