The Argentine Children’s Clothing Association recently requested the Argentine government to impose restrictions on children’s clothing imported from China and strengthen the protection of related industries in the country.
Argentina’s “El Nacional” quoted figures provided by the association’s chairman as saying that in 2008, Argentina’s children’s clothing imports amounted to US$47.4 million, of which children’s clothing from China accounted for 78.4% of the imports.
The chairman said that between 2004 and 2008, Argentina’s import of children’s clothing from China increased 47 times. The production cost of Chinese children’s clothing sold in the Argentine market was only 1/2 or even 1/3 of that of Argentine companies. Therefore, it has a clear price advantage, resulting in Argentinian companies’ share of the children’s clothing market is getting smaller and smaller.
The chairman also emphasized that Argentina’s “underground garment factories” have very low production costs because they employ “illegal workers” and evade taxes on a large scale. Argentine children’s clothing companies are faced with the dual impact of imported products and “underground clothing factories” and are in a very difficult situation.
The chairman called on the Argentine government to increase restrictions on imported children’s clothing, and at the same time crack down on “underground clothing factories” to ensure the production and employment of regular children’s clothing enterprises.
The Secretary of State for Industry at the Ministry of Economy of Argentina said that the Argentine government will respond to the requirements of children’s clothing companies and require children’s clothing companies to ensure stable employment for their employees.
In recent months, the Argentine government has taken a series of measures to strengthen restrictions on imported products, and some products from Brazil and China have become the focus of Argentina’s restrictions. The WTO criticized Argentina’s trade protectionist measures as being detrimental to the world’s joint response to the financial crisis through expanded trade.