Alarm in the Argentine footwear industry
The Argentine Federation of the Footwear and Related Industries (FAICA), made up of the footwear chambers of Buenos Aires, Córdoba and Santa Fe, released a joint statement listing the consequences of the measure issued by the national government. Among them: a deepening of the current crisis in the sector, with weak consumption and unfair competition that will accelerate factory closures and layoffs.
Below, the full statement:
"Alarm and concern in the Argentine footwear industry"
"Following the announcement by the National Government regarding further tariff reductions on imported footwear, the sector finds itself facing a situation of serious and immediate impact."
"The national footwear industry sees in this measure a direct and lethal blow to its continuity and to the maintenance of formal jobs, which we strive to preserve in the current context of low consumption and reduced purchasing power, coupled with the competition not only from imported products with better market access, but also due to the high cost of local production, tax pressure, smuggling and informal manufacturing, to name a few major challenges."
"Therefore, we urgently call for actions to create a level playing field and for the opportunity to work together with national authorities to enhance the competitiveness of our manufacturing companies, which have operated and invested in the country for over 100 years, implementing technology, generating genuine employment, training in trades, exporting value-added and design products, and positioning Argentine fashion worldwide."
"We are not asking for a protected industry, nor do we promote anti-competitive protectionism. But as manufacturers, we fight daily to compete under equal conditions and continue investing in our brands, our factories, and our workers."
"We know this measure alone will not reduce prices for consumers, but we do know it will lead to higher unemployment, the replacement of local production with imports, and, consequently, fewer Argentines (soon to be unemployed) will be able to afford footwear, which is an essential good regardless of its origin."
"Without industry and without employment, there is no nation, no consumption, and no future for us or for our children."
"We are competitive industries. We are labor-intensive industries. We are an industry with a history and a legacy. We are a tech-driven industry. We are a regional and global reference. And all we ask for is to be able to compete in Argentina under the same conditions as everyone else and under the same conditions as we compete abroad."
"The countries that will benefit most from this measure are major global footwear producers, often with working conditions far below any standard of dignity, and who, just to access our market, will operate unfairly and at prices so low they will only benefit large importers, without even delivering any positive impact for the consumer."
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