Representatives of the Brazilian Footwear Industry Association (Abicalçados) and the Argentine Chamber of Footwear Industry (CIC) met on the morning of March 7 to discuss bilateral trade in the sector. The highlight of the agenda was the importance of maintaining the tariff, Tarifa Externa do Mercosul (TEC) to prevent a possible "invasion" of Chinese products into both countries. [Brasil and Argentina unidos pela manutenção da TEC – Abicalçados]
The executive chairman of Abicalçados, Haroldo Ferreira, stresses that the meeting was very productive. Argentina, according to him, has suffered from the increase in footwear imports, mainly from China. Since China eased its Covid Zero policy and returned to the market with appetite, footwear has run into problems. According to data processed by Abicalçados, almost 50 million dollars of Chinese footwear entered Brazil last year, 34.6% more than in 2021. In Argentina, the result was even more worrying, with the equivalent of $88.7 million entering the neighboring country. in footwear from China, up 438% compared to 2021. "The end of the TEC, currently at 35% for footwear imported from countries outside Mercosur, would pave the way for a Chinese invasion of Brazilian and Argentine shelves," Ferreira warns, stressing that this is not protectionism but trade defense. The indiscriminate entry of Asian shoes would cause a collapse of the sector, generating a wave of unemployment. We are not able to compete on equal terms with a country that practices dumping - export prices lower than those charged on the domestic market - and does not respect labor and sustainability legislation", he adds.
