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Argentine policy to impact Uruguayan textile sector jobs

16
Apr '12
The non-automatic licensing system and other protectionist measures introduced by Cristina Fernandez de Kirchner Government in Argentina earlier this year will negatively affect employment in the Uruguayan textile sector, according to a report by Centro de Investigaciones Económicas (Centre for Economic Research or CINVE), an Uruguayan-based organization.

The report titled “Argentina: Protectionism and discretion”, said Uruguayan textile sector, which employs around 30,000 people, would be the most affected due to trade barriers erected by the Argentine Government.

The report said the textile sector accounts for 15 percent of the total employed persons in the Uruguayan manufacturing sector, and hence, it is a key sector for industrial employment in the country.

Unlike Brazil, where problems persist with respect to export of certain specific types of textiles and garments, the measures implemented by Argentina applies to exports of all textiles and apparels from Uruguay, the report said.

According to CINVE, Argentina is a major market for Uruguayan textile and garment exports, as around 40 percent of Uruguayan exports of towels and awnings, knitted fabrics and garments are destined to Argentina.

Fibre2fashion News Desk - India


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