Data released by the Córdoba Stock Exchange show that protectionism on the textile-leather sector through import licenses reaches an average of 56% for the entire value chain and reaches 94% in clothing. However, despite state protectionism, Argentines continue to pay more for clothes and shoes than their peers in the region. [En Argentina se paga hasta 86% más por electros y 59% por vestimenta que en Brasil y México - Los Andes]
Sports shoes and electronics are the products that present the greatest economic difference compared to other countries in the area.
A study led by analysts from the Córdoba Stock Exchange indicated that sports shoes and electronics are the products that present the greatest economic difference compared to other countries in the area, with less inflation.
This was determined by a report by the Economic Research Institute (IIE) of the Córdoba Stock Exchange. The studies carried out by the experts indicated that the increase in the prices of the textile industry occurs despite the fact that it is one of the most protected by the State.
A pair of sports shoes in Argentina costs 50% more than in Brazil and Mexico.
“The cost of the promotion regimes will mean around 0.8% of GDP, which is equivalent to 30% of the fiscal deficit goal agreed with the International Monetary Fund (IMF) or the budget of all public works carried out by the Nation. in relation to energy, transportation, education, housing and water in 2021 ″ pointed out the analysts of the Cordovan institute.
The data released by the Córdoba Stock Exchange expressed that state protection on the textile sector through non-automatic import licenses reaches an average of 56% for the entire value chain and reaches 94% in clothing . However, despite state protectionism, Argentines continue to pay more for clothing than their peers in the region.
“A dress barely costs a little more than in Brazil and 25% more than in Mexico. A jean, 29% more than in Brazil and 36% more than in Mexico. In dress shoes, the gap is 59% with a Brazilian pair and 38% with a Mexican one”, stated the analysts in charge of the study.
In addition, studies led by analysts Fabio Ezequiel Ventre, Miranda Bandoni and Valentina Vijarra, determined that sports shoes and electronics are the products that present the greatest economic difference compared to other countries in the area.
The increase in the prices of the textile industry occurs despite the fact that it is one of the most protected by the State. Photo: Courtesy
Thus, a pair of sports shoes in Argentina cost 50% more than in Brazil and Mexico. They are also more expensive in the local market than in New York, London or Tokyo. Regarding electronics, the experts indicated that the prices of the notebook models marketed in Argentina are more expensive in dollars than those manufactured in other countries such as Mexico or Brazil. This despite the fact that the electronics sector is the most protected by the country's protectionist regime.
The analysis of professionals in the economic field postulated that import substitution is inefficient because it does not lower prices for local consumers, but, on the contrary, inflates them.
