They pointed out that the remove of tariffs on imports of clothing and footwear “can cause the destruction of thousands of jobs” and demanded decline in taxes and social loads.
The Argentine Chamber of clothing (Camara) and the Argentine Federation of the clothing and related industry (Faiia) presented a joint statement where they warned that the Low of tariffs on clothing and footwear imports announced by the government “can cause the destruction of thousands of jobs and the breakdown of hundreds of industries“
In addition, they claimed the National Administration to comply with the promise of lowering taxes, social loads, lowering high financial costs and lifting the stocks to help the sector. They pointed out that as long as the tax burdens are maintained and the taxes lower imports, it will be conducted to an “industry”.
“The Ministry of Economy of the Nation has just announced that in the next few days the National Government It will lower the imports of imports of clothing, footwear and fabrics. From the CIAI-Faiia we want to notice that this measure can cause the destruction of thousands of jobs and the breakdown of hundreds of industries, only in the textile-indumerary value chain. It is a sector that has a long tradition in our country and generates a lot of employment: there are 539,000 occupied throughout the value chain and only industrial links employ more than 290,000 people“They alerted camera and Faiia in the joint document.
The government lowered the imports to the importation of clothing and footwear
“With the aim of lowering local prices and increasing competition, we are going to reduce taxes to the importation of clothing, footwear and fabrics. From a decree that will be published in the next few days in the Official Gazette, Clothing and footwear tariffs will be reduced, which will go from 35% to 20%; from fabrics from 26% to 18%; and of the different yarn from 18% to 12, 14 and 16%, “Luis Caputo announced this Friday through the social network X.
From the clothing cameras, they considered that the measure “favors the unfair competition of imported products” for “ridiculous prices” due to the value of the dollar in Argentina and the low labor and tax costs faced in the countries where these products are manufactured. In turn, they highlighted that The government’s decision is “implemented without any compensatory measures for the local industry, which faces greater tax pressure and social loads, than in competitors. “
They then expressed that the measure will also impact, to a greater extent, on the formal segment of this value chain, which is the one that faces imported competition, and pointed out that “it will imply a fall in collection by social loads. Even the reduction of tariffs implies more fall in fiscal collection, which will deepen the problems in public coffers. In other words, The National Government resigns fiscal resources to destroy formal employment and companies in our sector“They pointed out.
The textile sector also explained that the government’s measure opens the economy with a cheap dollar and “without leveling the court.” They then remembered that these measures had already been taken in other periods with the same result: deindustrialization, unemployment and primarization.
“This will be added deepening of the shortage of dollars for the highest imports of products that until now are manufactured locally. This measure violates the operation of Mercosur, which has a common external tariff defined by all partners, 35% in the case of clothing. And it also goes against what is happening worldwide, where governments are increasingly seeking to preserve their local industries to take care of jobs against Asia’s advance, “they completed.
Source: Ambito
