Argentina lowers import tariffs on footwear, clothing and textiles
After the Consumer Price Index (CPI) recorded a 2.4% increase in February -higher than expected-, the Argentine government decided to reduce import tariffs on footwear, clothing, and textiles to boost competition in the sector and control inflation.
According to Economy Minister Luis Caputo, tariffs on clothing and footwear will drop from 35% to 20%, while textile import duties will be reduced from 26% to 18%. Various types of yarns will also see reductions, with rates decreasing from 18% to between 12% and 16%.
The minister emphasized that Argentina has the highest prices in the region in this sector.
The Argentine Industrial Union (UIA) and the Argentine Chamber of Clothing Industry (CIAI) opposed the measure, arguing that competition against imported finished goods becomes unfair and unbalanced.
The UIA expressed that "it is troubling that the trade integration agenda is not accompanied by a domestic competitiveness agenda." The organization also highlighted issues related to illegal trade, smuggling, and brand counterfeiting.
Furthermore, the UIA urged the government to address issues that “hinder competitiveness and to define a path to level the playing field against the disparities caused by what is known as the 'Argentine cost.'"
The CIAI opposed the decision. In an official statement, the organization warned that the resolution would "destroy millions of jobs and national companies, encourage unfair competition, and lead to an industrial collapse."
"This will cause the loss of thousands of jobs and the disappearance of factories that will be unable to compete with imported products at ridiculously low prices," the statement added.
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