While the government of Javier Milei promises to advance in commercial opening, the price gap in shop windows continues to expose — through a simple pair of pants — the barriers of an economy that has not yet managed to align with the region. To nationalize a product, the importer must face a cascade of costs that include: Fiscal stamps and port fees. The so-called 'double VAT', which adds an extra 20% to the usual 21%, plus Perceptions of Gross Income and Profits. Internal logistics costs and protective tariff positions. A recent report showed that while in most Latin American countries the price of a Levi's pant remains in standardized ranges, when crossing the Argentine border its value more than doubles, turning an everyday garment into a luxury item. According to what Argentine News Agency learned, the survey published by the journalist from La Hiper Realidad details an uncomfortable contrast when looking at the Latin American window display: Mexico City and Santiago: In Mexico City a women's Levi's jean can be found between 48 and 60 dollars, while in Santiago it ranges between 50 and 65 dollars. Rest of the region: In Bogotá the price averages 68 dollars; in Lima, 73; and in São Paulo, 75. Argentina: In Buenos Aires, the same product without special editions is sold between $135,000 and $198,000, which averages between 110 and 130 dollars. 'This goes to the final price, no one keeps the cost in their pocket,' summarized García, summarizing the 'Argentine Cost'. 'Neither taxes, nor logistics, nor labor costs are enough to justify why we pay double what they do in Chile or Mexico, countries that also have taxes, salaries, and transportation,' the report emphasizes, pointing out that this situation encourages the return of tourists who 'pack jeans in their suitcases'. The odyssey of the imported: from the ship to the gondola. The distortion that today affects clothing has deep roots in the Argentine cost structure. BUENOS AIRES, Feb 13 (NA) -- Buying a basic pair of jeans from an international brand in Argentina has become an 'economic mystery' that defies all regional logic. 'The FOB value (the price on the ship) of a dollar that is paid for any product, when it is finally taken out of Customs, costs between US$ 2.20 and US$ 2.30.'
The Economic Mystery: Why Jeans in Argentina Cost Double
Despite government promises of trade liberalization, the price gap for imported goods in Argentina remains vast. An analysis of Levi's jeans prices shows that due to a cascade of taxes, duties, and logistics, their cost in Buenos Aires is double that in neighboring countries, turning an everyday item into a luxury good.