The Pro Tejer Foundation assured that the measure announced by the Government “does nothing but worsen the complex situation that the textile sector is going through.”
After the Government, by decree, reduced tariffs on import of textile products and footwearthe Pro Knitting Foundation warned about the impact that this measure could have on the national industry and warned that “it puts at risk the continuity of 10 national factories that generate around 1,000 formal and qualified jobs.”
In that sense, they warned: “We believe that this measure It only worsens the complex situation that the textile, clothing, leather and footwear sector is going through, which has already lost 8,300 formal jobs according to official data as of July 2024. and in relation to the same month of the previous year, which represents 27% of the loss of industrial employment. This decision “It will mean enormous damage to the local productive network and potential destruction of capabilities built over years.”
Furthermore, they pointed out that the Government’s decision was made based on a “incorrect diagnosis”. They explained that “the problem of the ‘Argentine cost’ is not related to the efficiency door inside the factory, but is linked to the systemic competitiveness associated with the structural problems that the Argentine economy is dragging several decades ago. These are the high tax pressurethe lack of financing, logistical and transportation problems, lack of infrastructure, among others.
In turn, they highlighted that local production factories “have been modernized in recent years, investing in new technologies, digitalization, process automation and expansion of installed capacity, positioning the segment on the global technological frontier.”
On the other hand, the Pro Tejer Foundation highlighted the production of synthetic yarns in Argentina is “strategic” since “it is the textile segment with the greatest possibility of incorporating innovation and technology” through “new materials that allow specific functionalities and applications “.
Another point they questioned was the reduction of tariffs on the footwear dismantling kit and footwear parts, another product that has national production “and value chains that generate employment throughout the country and that have recently made large investments.”
Imports of these products already had a 15% exception tariffthey move to a tariff of 10% and the capelladas, whose tariff was in 28%, drop to 10%.
They warn of the impact that the reduction of import tariffs could have on the national industry
They also emphasized that, to take this measure, they should first “transform the structural conditions under which production develops in Argentina and which explain the problems of local competitiveness” and firstly “carry out the first and second-class reforms.” generation that improve systemic competitiveness”.
Likewise, they pointed out that to generate a reduction in the prices of products there should be a reduction in national, provincial and municipal taxes, which explain 50% of the value of the garments, “given the price of a synthetic yarn it influences less than 0 .1%”.
In closing, the Pro Tejer Foundation asked “prioritize federal employmenttechnological frontier investments and the development of national industry in strategic segments for national sovereignty, innovation and the future of the value chain”.
Source: Ambito
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