The textile industry in Tierra del Fuego is beginning to lay off workers. All the alarm lights went on when the company Australtex decided to lay off 15 workers in the past few days and announced that it is analyzing suspensions of more workers.
The questions are intensifying because it is a sector that should develop its activity without problems. The Fuegian textile industry has subsidies and tax exemptions from the State and protective customs provisions, the textile industry of Tierra del Fuego awakens everyone’s attention. Well, this would not be the first case of businessmen who make decisions according to the famous “just in case”, eventually covering themselves from any change in a situation that could be adverse to them. What is really happening? Are they fearing that privileges and subsidies to that sector will be cut?
All this opens a new debate and an interesting question for all Argentines: is it worth the fiscal effort and the subsidy given to this industry? Because despite receiving all kinds of subsidies, customs protections and aid and without seeing their sales levels affected or punished by a recession, Fuegian textile companies shrink their workforces, take away jobs and reduce working hours?
From the analysis of the data on foreign trade in textiles between 2018 and 2022, it is observed that 7.5% of the textiles (fibers, yarns, fabrics and clothing) that are imported into the national territory enter the Special Customs Area of Tierra del Fuego (AAETF). ), however in the period under analysis, yarns had income above 27% and fabrics close to 15%, with both manufactures being mostly produced on the continent.
In accordance with the provisions of Law 19,640, import restrictions or import tariffs do not apply to this area, which gives it a very eloquent competitive advantage.
Based on estimates made by private organizations, the theoretical cost of a job in Tierra del Fuego in the sector is US$ 7,308 per month, that is, the equivalent of what the State stops receiving in terms of revenue from industrial promotion.
It is time to define, redefine and rediscuss all the aid, subsidies and exemptions that the national state makes since in recent years Argentina has been a true festival of unjustified subsidies, distorted aid and promotions that have not served to really develop the sectors to which aimed to stimulate.
Source: Ambito
