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New Argentine policy affects Uruguayan textile exports

01
Mar '12
Nearly US$ 20 million worth of Uruguayan textile and garment exports to Argentina have been blocked due to the non-automatic licensing system implemented by Argentina.

Under the non-automatic licensing system, import licenses can be delayed for a period ranging from 30 to 60 days.

Uruguayan trade relations with Argentina have turned complicated after its neighbour adopted new policies that created several obstacles for Uruguayan textile and garment exports.

Meanwhile, some proposals put forward by Uruguayan industry such as dragging Argentina to the World Trade Organization (WTO) have been turned down by President Jose Mujica saying such a step would adversely affect Uruguayan tourism as well as Argentine investments in Uruguayan real estate sector.

However, Uruguay is mulling on imposing counter measures to protect its domestic textile and garment sector, which includes putting a cap on Argentine products that are sold in Uruguayan stores and supermarkets.

Fibre2fashion News Desk - India


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