Argentina blames industry difficulties on falling domestic demand and rising imports
According to statistics released by the Argentine Textile Promotion Association (Pro-Tejer), from January to September 2016, affected by the decline in local purchasing power, a sharp decline in consumption, and the current government’s relaxation of import restrictions, Argentina’s textile industry production fell by 25% year-on-year. %, and the number of textile imports increased by 15% year-on-year. Sorabiya, the head of the association, said that due to the downturn in the industry, many textile factories have closed down this year, and about 20,000 workers have been laid off.
From January to September this year, 63% of Argentina’s textile imports came from Asia, of which 39.4% came from China. What worries the textile industry most is that the largest increase in imports is precisely the final products with the highest added value. The industry said that local financial, logistics and labor costs in Argentina remain high, corporate tax burdens are heavy, and industry development is difficult.
Argentine Production Minister Cabrera recently attended a textile industry event and said, “When it comes to integrating into the world, our Argentine business community, especially industrial companies, are often afraid because we do not have the ability to face fierce competition. This point Everyone knows. So, we are thinking about how to “smartly” integrate into the world, which requires everyone’s joint efforts. This does not require the productivity and competitiveness of the business world to increase significantly overnight. We will never let any company “Everyone is left behind”
In response, Sorabia responded: “It is Argentina as a whole that lacks competitiveness, not the textile industry. Industry competitiveness depends on enterprise production efficiency, but the essence of industry competitiveness is the overall competitiveness of the country.” At the same time, he also emphasized that “Argentina currently has 32% poor people, and the reality does not allow employment to be threatened. If there was no policy protection for the automobile manufacturing industry, there would not be a single domestically produced car on the streets of Argentina.” Argentina will face difficulties in the industry. Blamed on falling domestic demand and rising imports
AAA
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