Argentina’s textile industry lost 12,000 formal jobs in 2025—over 20,000 since 2023—as cotton T-shirts enter the country declared at less than a cent per dollar. The cause: systematic under-invoicing in imports, which, according to the Argentine Federation of Textile Industries (FITA), affects more than 70% of textile imports, with prices below historical levels, not even covering the cost of raw materials.
This practice, in addition to impacting the textile sector, is beginning to spread to other industries, such as steel and toys. The weakening of anti-dumping measures, which expire in 2026, exacerbates the situation. In a meeting with the Minister of Economy, Luis Caputo, the Argentine Industrial Union (UIA) expressed concern about the entry of under-invoiced products, highlighting the global overcapacity that encourages unfair imports.
The impact is devastating: in January 2026, textile industrial production fell by 23.9% compared to the previous year, the lowest level since 2016. With warehouses full and sales stagnant, the use of installed capacity in the sector dropped to 24%, well below the 53.6% of the industry in general.
Moreover, the import of consumer goods grew by 54% in 2025, while that of basic inputs fell by 35%. This shift in import patterns limits the growth of local production, with investments in imported machinery dropping by 11% in the first two months of 2026. In February 2026, the clothing and footwear sector recorded no inflation, contrasting with the general price increase of 33.1%.
The situation highlights the fragility of Argentina’s industry in the face of global and local trade policies. The reliance on cheap imports and the lack of control over under-invoicing threaten the country’s economic sustainability, endangering thousands of jobs and industrial sovereignty. According to the Perfil portal, this crisis demands an immediate government response to protect the domestic market and reverse the trend of deindustrialization.
Original published at O Cafezinho.