Argentine textile employment, a collateral victim of the opening to imports

Buenos Aires - At a clothing factory in Buenos Aires, dozens of workers watch with concern as the garments Imported sewing machines are gaining ground against idle sewing machines, a postcard from the crisis in the Argentine textile industry in the face of open-market policies commercial of the government of Javier Milei.

At Confecciones Seman, a suit and shirt factory, more than 100 Employees work immersed in the rhythmic sound of sewing machines. Until two years ago they produced more than 3,000 suits per month. Now they manufacture about half.

Since 2023, the textile sector has laid off more than 18,000 people and is operating at a third of its installed capacity, according to February data from the consulting firm Analytica and the Federation of Textile Industries of Argentina (FITA). "All this takes away your motivation," the owner of Confecciones tells AFP. Seman, Alejandro Pernas, with 40 years of experience in the sector. The government emphasizes that the massive influx of imports—including the The arrival in the country of Chinese platforms like Shein and Temu lowered prices in benefit to consumers in a country where clothing has been historically costly.

"I never bought clothes in Argentina in my life because it was a rip-off," she said. This month, the Minister of Economy, Luis Caputo. Manufacturers warn that in the face of the competition posed by the Cheap imports will have to deepen staff cuts, in a sector that employs more than 500,000 people throughout its supply chain. Since coming to power in December 2023, Milei has promoted a strong fiscal adjustment and relaxed imports with the aim of reducing inflation and lower prices, a program that nevertheless resulted in a strong decline in consumption.

Since then, Pernas has begun importing some finished products. Search to maintain the factory's jobs, but says that in these Under conditions of "indiscriminate opening" and depressed consumption, it will not be possible to do so. for a long time. "If the market allows both scenarios to coexist, local production and "Importing would be fantastic," he notes, but warns that instead, "today the The market in Argentina is not vigorous.

Controversy

1,000 kilometers from Confecciones Seman, in the province of Mendoza (West), a shop sells imported used clothing from Asia and the United States by weight. and Europe, at 15,000 pesos (10 dollars) per kilo. "Clothes are so expensive. I was looking downtown and it was crazy," she says. Jimena, 34, while checking coat racks.

Clothing imports increased by 97.3 percent last year and, since 2023, Prices fell by 30.6%, according to a report by the consultancy Analytica. A 2024 report by the Fundar research center indicated that clothing in Argentina is 35 percent more expensive than the rest of the region, although the trend It is the opposite in low-end clothing and there is a dispersion of prices. According to Fundar, the price increase process began more than two decades ago and Among the causes were "the growing barriers to imports."

Caputo said that the textile sector was historically protected by the State and consequently Argentinians "have been paying two for textiles and footwear, three, four, ten times its global value," in a model that only It benefited the business owners in the sector. The statements by Caputo and other officials sparked criticism from part of the textile sector and FITA stated in a press release that the problem is "Fraudulent competition," since domestic production faces "a high tax burden, high costs, logistical deficiencies and lack of financing".

Worry

Industrial engineer Daniel Romani (70), workshop manager of Seman Clothing says that the people at the factory are "very distressed and very nervous". "It's logical, because he sees that from making 200 garments he went to 150, to 120 and now We're making 100 sacks a day. So the operator whose job is to After many years here, he feels worried. Because, where is he going to go to work? The government's position is that those industries that cannot compete They must be retrained, but Pernas has his reservations. "My company can be restructured; tomorrow it can be an importer, but in What will the girl who puts on sleeves at my company do for the last 30 years? "years?", the businessman asks.