Brazil | 08/07/2022

Concern in Brazil: Argentine restrictions on footwear imports

​They are a consequence of the latest measures by the Argentine government to contain the outflow of foreign currency.

Footwear exports from Brazil to Argentina reached a notable increase until the middle of this year, compared to 2021.

Under the title "Argentina re-imposes restrictions on footwear imports", the statement issued on 07/04/2022 by ABICALÇADOS -Brazilian Footwear Industries Association- reported that at the end of June, the Central Bank of Argentina, altered the conditions of access to the Single Foreign Exchange Market for the payment of imports. The measure tends to temporarily limit imports, in order to contain the outflow of foreign currency from the country and maintain the level of international reserves. Until September 30th, 2022, merchandise payments will only be released after 180 days.

The executive president of ABICALÇADOS, Haroldo Ferreira, expressed concern about the measure, stating that it could make the export operations of some companies for that market unviable. "Considering that the payment will occur six months after the arrival of the merchandise at the destination, some businesses will be affected and others will be unfeasible", he assured.

The news took the Brazilian footwear sector by surprise at a time of recovery. According to data prepared by ABICALÇADOS, between January and May, general footwear exports totaled 64.24 million pairs, which generated US$ 538.72 million, a growth of 30.3% in volume and 66.5% in turnover, in relation to the same period of the previous year.

Argentina is the second largest international market for Brazilian products, which from January to May 2022 imported 6.82 million pairs, worth US$ 74.62 million. This meant increases of 64% and 93.7%, respectively, compared to the same period in 2021.

Source: ABICALÇADOS/Brazil