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Argentina mulls curbs to check textile imports

Feb '12
The Government of Argentina has put forward three possible measures to protect the domestic textile industry from unfair competition. The measures are increasing import duty, implementation of new Non-Automatic Licensing System, and introducing anti-dumping duties.

The probable schemes were listed by Industry Minister Debora Giorgi during her meeting with representatives of La Federación Argentina de Industrias Textiles (FADIT-FITA or Argentina Federation of Textile Industries), the oldest and largest textile association in Argentina.

In turn, FADIT-FITA assured to invest in the country's textile sector to generate more employment opportunities, increase exports and earn more foreign exchange. The textiles sector would also invest to achieve import substitution and to cater to needs of the domestic market.

The meeting was attended by FITA President Augusto Costa and Eduardo Bianchi, the Secretary for Economic Coordination and Competitiveness, among others.

During the meeting, the Minister asked the textile industry to make a list of items that can be included in the list of 100 items on which tariff can be increased beyond the Mercosur Common External Tariff (CET), and also to add to Non-Automatic Licensing System (LNA) or apply anti-dumping protection.

Last December, Mercosur member countries decided to individually apply additional import duties above the CET on 100 items. However, the tariffs cannot exceed the 35 percent limit set by the World Trade Organization (WTO).

The Minister, along with Secretary of Foreign Trade, Beatriz Paglieri, is currently preparing a list of 100 textile and non-textile items on which Argentina would like to raise tariff. The final list is to be submitted to the Mercosur Trade Commission, and the new tariff would come into effect if no objection is raised by other member countries.

The Argentine Government is also considering increasing the current list of 605 items that come under Non-Automatic Licensing.

The Minister said the Government would protect the domestic textile industry from unfair foreign competition and would support the industry in its efforts to innovate, add value and save every single job.

Fibre2fashion News Desk - India

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