Argentine import restrictions increase domestic apparel prices

According to a report released on June 17 by the Institute of Industrial Economics of Argentina, Argentina’s strict restrictions on textile imports made domestic companies lack the incentive to increase product competitiveness, leading to soaring clothing prices and increasing consumers’ burdens.

The report pointed out that in the first four months of this year, Argentina’s textile imports amounted to 133.8 million U.S. dollars, a year-on-year decrease of 12%. This is the first time that Argentina’s textile imports have fallen since the financial crisis. The decrease in imports caused the textile trade deficit in Argentina in the first four months of the year to fall from US$124 million in the same period last year to US$102 million.

The report emphasized that the government’s restrictions on textile imports have continued to increase, including adopting higher import tariffs, implementing a non-automatic import licensing system, and adopting anti-dumping measures. Most of these restrictions are aimed at Chinese textiles, causing China to export textiles to Argentina. Seriously affected.

The report analyzes that excessive protection has greatly reduced the competitive pressures of Argentine textile companies, lacked incentives to invest and innovate to increase the competitiveness of products, and simply adopted price increase methods to increase corporate profits. These burdens were eventually passed on to consumers. on.

According to a survey conducted by the Institute, from April 2011 to April 2012, clothing prices in major regions in Argentina rose by 26% to 30%, exceeding the increase in inflation over the same period. The report also predicts that the Afghan government's restrictions on imported textiles will not be eliminated in the short term, and consumers will have to continue to purchase high-priced domestic textiles.