Clothing Manufacturers in Latin America: Top 10 Countries and How South America Sources

Clothing manufacturers in Latin America are concentrated in two groups of countries. Mexico and Central America (Honduras, Guatemala, El Salvador, Nicaragua, and the Dominican Republic) make garments mainly for the US market, while South American producers such as Colombia, Peru, Brazil, and Argentina serve mostly their own regions. South America is also a buyer, and local production cannot meet all of its demand: Chile, Peru, and Colombia import a large share of their clothing from Asia, including India. This guide names the main Latin American clothing manufacturing countries, explains what each is known for, and shows how South American brands source from overseas.

Top 10 Latin American Clothing Manufacturers by Country

Figures come from regional trade bodies and trade press for the years shown; check the latest national statistics before relying on them for costing. If you are weighing Mexico in detail, our guide to finding clothing manufacturers in Mexico compares it with India.

Clothing Manufacturers in Central America

Honduras, Guatemala, El Salvador, Nicaragua, and the Dominican Republic form the region’s main export base, and their strength is knit basics made close to the US market. Until 2025, the six CAFTA-DR members (these five plus Costa Rica) shipped apparel to the United States duty free, and US brands still lean on them: a 2026 industry benchmarking study found that 76% of surveyed US fashion companies sourced from CAFTA-DR countries, up from 64% the year before. US duty rules for the region have changed several times since 2025, while Mexico remains duty free for USMCA-qualifying garments, so check the current rate for each country before costing.

Clothing Manufacturers in South America

Producers in the region mostly serve nearby markets, and Latin American clothing manufacturers in general are strongest in the nearshore trade with the United States. Colombia and Peru are the most export-oriented of the South American clothing manufacturers, Brazil has the largest and most integrated industry but sells largely at home, and Argentina’s industry is oriented to its domestic market. High duties under the Mercosur common external tariff protect Brazilian and Argentine production, so imports into those two countries face higher landed costs than elsewhere in the region.

How South America Buys From Asia, Including India

South America is a net buyer of clothing. Chile is a clear example: it imported about $1.24 billion of apparel in the first half of 2026, down 3.6% on the year, with trousers and shorts the largest category at about 21.5%. Chile applies a flat 6% duty on most goods, plus 19% VAT, and waives the duty for countries with a trade agreement; India and Chile already have a preferential trade agreement that was expanded to cover more than 1,700 products including textiles and apparel, and the two countries are negotiating a full economic partnership agreement, with roughly 80% of the text concluded and a conclusion targeted for October 2026. China is by far Chile’s largest supplier overall, which leaves room for specialists in categories such as cotton knitwear and sleepwear.

Our Experience: A Chilean Pajama Customer

Our own experience confirms that South American brands buy from India. We have a customer in Chile for pajamas, including adult sleepwear in soft cotton knits such as interlock. For sleepwear, India’s strengths are the ones that matter most to Chilean buyers: cotton fabrics knitted, dyed, and printed within one cluster, flexible print and colour options, and consistent quality across repeat orders. Brands in Chile and the wider region can see our page for pajama manufacturers in India, and our guide to the best fabric for sleepwear explains the fabric choices.

Choosing Between Regional and Overseas Production

Latin American brands tend to use regional production for speed and small runs, and overseas manufacturers for planned ranges where cost and fabric choice matter more. Spanish-speaking buyers also compare Asian options with Iberian ones, and our guide to clothing manufacturers in Spain covers the main factories there, while European brands can see our page for kidswear for EU brands. Whichever route you choose, compare quotes on landed cost, including duty and VAT, and order a production sample first. Our guide to the best country to import clothes compares the main producing countries.

Frequently Asked Questions

Which are the main clothing manufacturers in Latin America?

Mexico, Honduras, Guatemala, El Salvador, Nicaragua, and the Dominican Republic export mainly to the United States, while Colombia, Peru, Brazil, and Argentina serve mostly regional and domestic markets.

Where are clothing manufacturers in Central America located?

Mainly in Honduras, Guatemala, El Salvador, Nicaragua, and the Dominican Republic, in industrial and free-trade zones that specialise in knit basics, denim, and sweaters for US brands.

Who are the main clothing manufacturers in South America?

Colombia and Peru are the most export-oriented, Brazil has the largest integrated textile and apparel industry, and Argentina produces mostly for its domestic market and for Brazil.

Do South American countries import clothes from India?

Yes. Chile, for example, imports around $1.2 billion of apparel in six months, and India sells cotton knitwear and sleepwear there under a preferential trade agreement that Chile and India are negotiating to expand into a full partnership agreement.

What is the import duty on clothing in Chile?

Chile applies a flat 6% duty on most goods plus 19% VAT, and the duty is waived for countries with trade agreements. Confirm the rate for your product and origin with a customs agent.