ADEX advises use of local currency to boost garment export

03 Apr '14

2 min read

The Peruvian clothing exporters should coordinate with the Government for implementation of a “reciprocal payments and credits agreement” to stop using the US dollar as the transaction currency and instead prefer the Peruvian sol and Argentine peso to boost their exports, especially to Argentina, Exporters Association (ADEX) has suggested.

Addressing a press conference in connection with X Foro Textil Exportador, which is to be held on April 8, 2014, Pedro Gamio, the chairman of ADEX’s Committee on Garments, said that in the framework of Asociación Latinoamericana de Integración (ALADI or Latin American Integration Association), Argentina does not want to stop using the US dollar as transaction currency, as its helps it to pay its external debt, which has resulted in a decline in its imports from Peru.

Mr. Gamio said the use of the Peruvian sol and the Argentine peso would be an interesting way to resume growth in the Argentine market and maintain trade relations, andina reported.

In 2013, Peruvian textile and clothing exports fell by 11 percent year-on-year, but the expectations are good this year, Mr. Gamio said.

However, the sector faces several challenges, including protectionism by various countries like Brazil, Colombia and Ecuador, and especially Argentina, he added.

Argentineans tend to dress well, which makes the country an attractive market for apparel exporters. But, for the fear of losing its ability to pay its debt, the Argentinean Government has begun to restrict the outflow of dollars. So, a balance of trade with that market is required, Mr. Gamio explained.

Emphasizing on the complementarity between the two countries, he said Peru is strong in knitted garments, while Argentina is more oriented towards producing woven apparel, so Peruvian garment exports would not hurt the Argentine clothing industry.

Fibre2fashion News Desk - India

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