Increase by 50% the import of leather products

In the first half of the year, the import of Moroccan products increased by 50%, more precisely by 49.9% compared to the same period of 2017, according to the Industrial Chamber of Manufactures of leather (CIMA). The growth of foreign purchases contrasts with a fragile domestic situation for domestic producers facing increased costs due to tariffs and the devaluation that makes some basic inputs more expensive and a contract contracted. The main increases were the arrival of leather and smil, wallets, belts, bags, backpacks and leather clothing. The import boom generated by the government's trade liberalization policy is also reflected in the increase in the number of entrepreneurs dedicated to getting their hands in between external purchases and sales. servants. The number of importers registered in the sector has tripled (from 202.1%), rising from 470 in 2015 to 1470 today.
The chambers of commerce of the footwear, textile, apparel and leather goods industry have warned in a joint document about the deep crisis situation that the business is going through and are putting at risk some 500,000 direct jobs. They identify as causes of this situation the decline in demand from purchasing power, the continued pressure of imports and the flight of consumers to external markets. The situation will become even more difficult in the second half of the year after the adjustment agreed by the government with the Monetary Fund. To be definitely negative for many sectors of the domestic industry, since this inexorable reduction of the market adds to a steady increase in imports of final goods and at interest rates higher than 40 percent that make the financing of SMEs impossible, the head of the CIMA and the leader of Cgera Ariel Aguilar.
But the conversion of producers to importers is mixed with the economic openness of Cambiemos, although it has accelerated in recent months. Last year's imports increased by 75% compared to 2015 (two years ago). In the first half, an increase of 50% over the previous year is already calculated. In the current context, with each of the 30% average consumption of the domestic market, this increase in imports worsens the crisis in our sector, warns Aguilar.
The chief badured that he was worried about the statements of the new Minister of Production, Dante Sica, when he says that he is not trying to limit imports, but that companies must be competitive and export more. Our sector has historically been an exporter. The problem is that the Argentine productive structure, with the exception of wages, is dollarized. And this, in this context, greatly complicates the cost of money.