By Paz Coliguante – Translated by Leidy Rachen
The recent opening of importations announced by the Argentine government for the textile and technological sector has generated intense debate about its impact on the local industry. The measure, which seeks to facilitate access to products such as spare parts for machinery and appliances, aims to improve price regulation at the national level. However, it is essential to analyze how this decision may affect local clothing production in the current economic context.
The textile industry in Argentina faces a complex dilemma. On the one hand, importing products at lower prices could satisfy growing domestic demand. On the other hand, this measure could endanger domestic producers who are already experiencing a difficult situation. According to recent data provided by the Fundación Pro Tejer, 70% of companies in the textile sector experienced a drop in their sales, while 35% were forced to cut staff.
It is essential to affirm that the problem is multifactorial: The Argentine textile sector not only faces economic difficulties, but also serious labor and environmental issues. A significant percentage of workers in the industry (about 60%) are in irregular working conditions, without access to basic conditions, which further aggravates the precariousness of the sector. In addition, many factories operate in poor building conditions, which has an impact on the quality of work and the well-being of employees.
The cost of production, along with the lack of access to imported inputs due to previous restrictions, has placed domestic producers in a vulnerable situation. The recent opening of importations, although limited, could offer them an opportunity to access cheaper materials, but at the cost of greater competition with foreign products.
How does it impact local production?
Although the measure aims to make more flexible access to certain essential products, it also poses a challenge for local industry. Cheaper importations tend to generate greater demand, but in a context of economic crisis with low wages and a market with less purchasing power, competition becomes unequal. At the local level, the textile industry faces a scenario of uncertainty, with prospects of continuing the fall in sales and employment in the coming years.
By 2025, 80% of textile companies do not plan to make new investments due to the economic crisis, raising even more doubts about the viability of local production. The relationship between importations and domestic production is becoming increasingly unbalanced, while the local industry struggles to stay afloat.
The future of the Argentine textile industry will depend on how these challenges are managed. As importations grow, local production is likely to continue facing a challenging outlook. It is urgent to find solutions that strengthen domestic producers, promoting policies that balance competition and favor a sustained growth of local industry, without neglecting the environmental and labor aspects that unfortunately continue to characterize it.
Sources:
https://www.indec.gob.ar/uploads/informesdeprensa/ipi_manufacturero_09_242917F5301B.pdf
