The national textile industry has expressed its concern over the tariff reduction for the importation of clothing and footwear announced by the government of Javier Milei. The Federation of Argentine Textile Industries (FITA) has issued a statement warning that this measure could affect employment, production, and the development of the sector, requesting the government to reconsider the decision.
In particular, FITA has pointed out that the reduction of tariffs without a comprehensive strategy to improve the competitiveness of the local industry could have serious consequences for the textile value chain in Argentina. The textile sector, which employs more than 540,000 people, is crucial for the development of regional economies in the country.
The Argentine textile industry is already facing difficulties due to falling sales, which have led to a decrease in factory activity and the closure of plants and businesses. According to FITA, the industry is currently operating with low utilization of its installed capacity and has lost a significant number of jobs in the past year.
The federation has expressed its concern over the lack of reforms to alleviate fiscal pressure, improve access to financing, and optimize logistics infrastructure in the sector. They believe that a tariff reduction without addressing these issues could weaken rather than strengthen the local industry, creating unequal competition that jeopardizes national production.
Both FITA and the Argentine Industrial Union (UIA) have urged the government to focus on improving internal competitiveness before implementing trade liberalization measures. On the other hand, the Argentine Chamber of Industry of Clothing (CIAI) has characterized the governmental decision as "an industrial genocide" that could lead to the destruction of thousands of jobs and the collapse of hundreds of industries.
In light of this situation, FITA has asked the government to reconsider the tariff reduction and has offered to collaborate in creating a development plan that guarantees equitable and sustainable conditions for the national industry and workers in the sector.
