1,000 jobs lost in Paraguayan apparel industry: AICP

07 Nov '13

2 min read

Over 1,000 jobs were lost in the Paraguayan clothing sector owing to the restrictions on Paraguayan imports imposed by Argentina since 2012, according to the Tailoring Industry Association of Paraguay (AICP).

The restriction imposed by Argentina has led to the shutdown of many clothing companies in Paraguay, mostly small and medium enterprises, which stopped production activities due to lack of orders from the Argentine market.

Santiago Colombino, head of the AICP, said the clothing industry of Paraguay is the most affected due to the import barriers imposed by the neighboring country, reports La Nacion.

However, exports from the Paraguayan clothing sector has registered significant growth owing to the increasing demand from Brazilian firms, he added.

According to the AICP official, as of September 2013, over 77 percent shipments of textile products manufactured in Paraguay were destined to Brazil, yet this has not helped in overcoming the difference in apparel exports from the country, owing to the Argentine import ban.

Pablos Cuevas, deputy minister of Commerce of Paraguay, has announced that a Paraguayan delegation is scheduled to meet with Argentine authorities on November 12, 2013, in order to discuss issues related to trade between the two countries.

The meeting would address several outstanding issues such as import licenses, affidavits, and excessive controls goods in affidavits, he added.

In September 2013, the AICP reported that the barriers on Paraguayan imports imposed by Argentina had caused a damage of US$ 7 million to the Paraguayan clothing industry, owing to cancelled and pending licenses.

Fibre2fashion News Desk - India