The Government declares the textile and clothing sector an emergency

The Executive Branch declared the Textile and Clothing Sector in emergency for 120 calendar days through Supreme Decree No. 014-2026-PRODUCE, published on Thursday, October 1, 2026, in the official newspaper El Peruano (Year XLIII, No. 19552, LEGAL NORMS section, page 20). The measure, endorsed by the Ministry of Production, provides for the creation of a Reactivation Plan to boost financing and access for MSEs (Micro and Small Enterprises) to public procurement. The sector has accumulated a 9.9% contraction in its production between January and July 2026 and a 2.8% drop in employment projected for the end of the year.

The instrument was signed at the Government House, in Lima, on September 30, 2026, by President Keiko Sofía Fujimori Higuchi and the Minister of Production, Juan Carlos Requejo Alemán. It is based on Article 59 of the Political Constitution of Peru, Law No. 29158, Organic Law of the Executive Branch, Legislative Decree No. 1047, and the General Government Policy 2026-2031 approved by Supreme Decree No. 127-2026-PCM. The regulation is exempt from the Ex Ante Regulatory Impact Analysis, pursuant to Supreme Decree No. 023-2025-PCM.

The official diagnosis describes a “structural loss of productive dynamism and competitiveness.” Between 2018 and 2025, the industry’s added value fell from S/ 5,765 million to S/ 5,482 million (nearly 5%), its share of the national GDP dropped from 1.1% to 0.9% and in manufacturing output from 8.1% to 7.4%; labor productivity declined by 4.6% and national cotton production was reduced by 53%.

A contraction that accelerates in 2026

Between January and July 2026, the production of the textile and clothing industry contracted by 9.9% compared to the same period of the previous year, with reductions of 5.4% in the textile industry and 12.7% in clothing. The utilization of installed capacity fell to 58.4%, 3.7 percentage points below the manufacturing industry average. For the end of 2026, it is estimated that production would fall by more than 3.4%, exports by more than 3.9%, and employment by 2.8%.

Reactivation Plan with four lines of action

The Ministry of Production will approve the Plan for the Reactivation of the Textile and Clothing Sector through a ministerial resolution, within a period not exceeding fifteen (15) business days starting from the day following the publication of the decree. The plan comprises four lines of action:

• Boosting financing.
• Strengthening capacities, competitiveness, and productivity.
• Facilitating access for micro and small enterprises to public procurement, through the National Program “Compras a MYPErú”.
• Promotion of commercialization and opening of new markets.

A final complementary provision empowers the ministry to modify or expand these lines of action via ministerial resolution, depending on the evolution of the sector’s conditions.

El Niño as a risk factor

The decree cites Official Communication ENFEN No. 17-2026, dated September 28, 2026, which maintains the alert status for Coastal El Niño until the autumn of 2027. The regulation recalls that in 2023, under the effects of this phenomenon, the GDP of the textile and clothing industry contracted by 20.2%, and warns that its eventual intensification could affect supply chains, logistics, and demand patterns.

Monitoring and evaluation

The monitoring and evaluation of the plan will be the responsibility of the General Directorate of Business Development of the Vice-Ministerial Office of MSMEs and Industry, which will formulate the appropriate recommendations for that office. The decree is also published on the Single Digital Platform of the Peruvian State (www.gob.pe) and on the ministry’s digital headquarters.

The declaration reaches thousands of micro and small enterprises and workers in the sector, one of the most employment-intensive in the country. With a 120-day deadline and a plan yet to be approved, the Executive seeks to reverse a decline that already totals several years of loss of weight for textile activity in national manufacturing.

Source: El Peruano, Year XLIII, No. 19552, Thursday, October 1, 2026, LEGAL NORMS section, page 20 (official reference: D.S. No. 014-2026-PRODUCE).