The Salta Chamber of Commerce pointed out that this activity fuels smuggling and informality. “This grew due to the fall in purchasing power and the lack of controls,” complained businessman Gustavo Herrera, a reference for merchants.
Long lines of Argentines were seen this last long weekend at the border that connects the cities of Aguas Blancas, in Salta, and Bermejo, in Bolivia, to make purchases of various nature due to the devaluation of the neighboring country’s currency. Due to the convenience of the change, Argentines buy merchandise, footwear, clothing and even vehicle covers, it was reported. “The informal sale that enters as contraband grew due to the drop in purchasing power and the lack of controls,” complained Gustavo Herrera, president of the Salta Chamber of Commerce.in dialogue with Ámbito.
According to a report from Radio Salta, over the weekend there were long lines of people and cars, up to two kilometers long, “due to the number of people who decided to take advantage of the holiday to buy at the border because if it was already convenient, now it is much more with the latest devaluation of the Bolivian currency”. “In Bermejo, Bolivia, the exchange rate went from 0.90 to 0.92 bolivianos per $100 Argentine dollars in a few days,” he added. This causes, according to the report, that a car cover starts at $45,000.
According to Miguel Chehadia merchant from La Quiaca, currently brings in food from Bolivia at a convenient value for consumers and gave the kilo of rice as an example. The Bolivian costs around 50% cheaper than the Argentine, which is around $1,700. For this reason, on the Aguas Blancas – Bermejo border the presence of Argentine buyers from Salta, Jujuy and Tucumán has increased in recent months, it was explained.
Gustavo Herrerapresident of the Salta Chamber of Commerce, highlighted that this smuggling fuels informal sales which, in the case of his province, is around 50%. “It is very high and it is essential that the Nation and the provincial government do something because this informality also has an impact on the low collection of taxes and fees. And, therefore, the State has fewer resources for health and education,” he told Ámbito. According to the businessman, Uncontrolled fairs were previously nourished from the center of the country but now they acquire their merchandise at the northern border crossings.
Asked about the reasons for this increase, he explained that it is related, among other reasons, to the loss of purchasing power of workers’ salaries. “If you earn less, the consumer seeks to buy as cheaply as possible and there appears contraband, which does not pay any of the tax burdens that we must face,” he said. “In November we detected a minimal increase but people buy only what is strictly necessary, opting for second and third brands, and take advantage of promotions to finance their purchases with cards, in installments or with low interest,” he added.
Also in Cuyo
As Ámbito already stated, Due to the cheap dollar, one of the provinces where there is the greatest concern is Mendoza. In recent weeks, the Cristo Redentor international crossing witnessed extensive lines of buses transporting Argentine shoppers. Given this situation, The Economic Federation of Mendoza (FEM) issued a statement titled “Concern about the drop in consumption and smuggling of products in Mendoza”in which it accounts for the decline experienced by various sectors of the economy.
In particular, the text refers to the impact of shoe stores, clothing, technology and small appliances, among others. “The proximity to Chile has generated a particularly harmful situation for Mendoza businesses: the increase in consumers traveling to the neighboring country to buy, taking advantage of the exchange rate difference and the more favorable tax structure for the offer of products at more competitive prices,” he assures.
The FEM emphasized that the “shopping tours are not only intended for personal consumption, but have given rise to an illegal practice of smuggling, through which products acquired in Chile are introduced into the country irregularly and then marketed at fairs and social networks”. “This practice not only affects legal businesses, but also generates unfair competition that puts the sustainability of local SME producers at risk,” he denounced.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
