Due to imports and tariff increases, 70 leather factories were closed and 3,000 jobs were lost



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17-07-2018
The president of the Chamber of Industry explained that the opening of the external market, inflation and stakes, "make any productive project unsustainable"

The president of Manufactory of Leather Manufactures and Associates (CIMA), Ariel Aguilar, denounces that "the fall of the consumption the ] increase of imports increase in rates and interest rate which makes any unproductive productive project already generated the loss of more than 3,000 jobs and the closing of 70 factories. "

In the first half, the imported units of the products of the sector increased by 49.89% over the same period a year earlier, as reported by CIMA.

Similarly, foreign purchases of wallets, wallets, belts, bags, backpacks, leather clothing and others had already increased 75% in the last two years, compared to 2015. [19659004] "In the current context, with a drop in the domestic consumption of an average market of 30% this rise further deepens the crisis of our sector The most disturbing is that one of the conditions of the signing of the agreement with the IMF raises more than commercial opening and clearly in our sector this is confirmed, "pointed out In this sense, the leader made it clear that" another relevant fact that marks the political decision to deepen this openness is that the quantity of importers of leather goods rose from 470 to 1420. "

Aguilar said that the sector "has never proposed a closure of imports but, in fact, our industry has always coexisted with imported products in a responsible foreign trade management system."

The President was concerned for the statements of the new Minister of Production, Dante Sica who declared that he was not seeking to limit imports without the companies must be more competitive and exporter more

"Our sector has always been an exporter. The problem is that the productive structure of the Argentina with the exception of wages, is dollarized. Leather, in our case, has a value in dollars since 90% is exported in finished or semi-finished state and the costs logistics are directly related to fuels and are also dollarized, "says Aguilar.

Over the last two years In contrast, policies that have resulted in a decline in domestic consumption, such as the blind opening of imports, the Increase t arifs and fuels and rising interest rates resulted in the closure of more than 7,500 SMEs and loss of over 70,000 jobs in various industrial sectors

For the head of CIMA, he denounces that "the terms in which the question of competitiveness is asked are false since the 80s". The percentage of costs relates to problems that the government can regulate, such as tariffs "and emphasized that" it is proposed to reduce the fees paid by raw hides, which would leave the market with less internal hides in a clear bias of primarizacion of our value chain. "

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