The Argentine textile industry is in a deep crisis characterized by structural changes in economic policy, a sharp decline in activity and a scenario of growing uncertainty. Since the end of 2023, a reconfiguration of the economic matrix began, leading to a combination of commercial openness, a decline in consumption and a lack of competitiveness in the local manufacturing sector has a significant impact on one of the industrial networks with the greatest job creation capacity in the country.
Textile production fell 20% year-on-year and imports from China doubled
Priscila Makari, Executive Director of the ProTejer Foundation, spoke to this medium and assured: “The panorama of the textile industry is very complex. The numbers are truly alarming and reveal the problems with the model. In October, installed capacity reached 32.5%, a really low figure that is likely to deepen in November. Today, 7 out of 10 companies are unemployed.”
To this data is added a report from the Argentine Textile Industry Association (FITA), which ensures that the Textile production fell by 20.5% in September 2025 compared to the previous year. This represents the lowest performance recorded this month in the last decade.
The use of At 37.1%, installed capacity was also at its lowest level in the last 10 yearswhich represents a decrease of 4.4 percentage points from August and 14.2 percentage points from September 2024, the report said.
“The decline in activity in the textile industry continues to worsen. “It is a situation that requires a clear reaction and concrete measures to be taken in the short and medium term.”said Luis Tendlarz, President of FITA.
Decline in consumption and sales
The loss of purchasing power has had a major impact on sales and consumption. With a high exchange rate, textile companies have great difficulty competing with imported products and capturing export markets. According to ProTejer, imports from Textile and clothing products reached 332,696 tons and $1,450 million between January and Octoberwhich corresponds to an increase in volume of 89% and an increase in value of 61%.
Alberto Kahale, vice president of the Argentine Confederation of Medium Enterprises (CAME), commented on the impact of the decline in consumption in the country: “Factories that were doing very well two years ago with inflation at 200% are now closed and warehouses.” There are shoe factories with 800 employees that have gone down to 600 or 200 and closed“. From his vision, the lack of competitiveness of the exchange rate and the indiscriminate opening of imports They have caused an earthquake in the country’s production structure.
Unfair competition and the increase in used clothing
The high interest rates used to finance consumption and production contributed to the fiscal chaos in which Argentina is embroiled. do not allow them to compete with the sharp increase in importswith 70% coming from China. Makari mentions Chinese platforms like Shein and Temu that ensure they pay “virtually no taxes,” leading to extremely unfair competition with the local product. with approximately 50% of the final price consisting of taxes.
As part of the import boom The importation of used clothing into our country poses both an economic and health problem. In Argentina it has been restricted in the past for reasons of public health, hygiene, product safety and the protection of local industries.
In 2010, Decree 2112/2010 established the ban on the import of used clothing until December 30, 2015. In 2017, the government of Mauricio Macri extended the restriction through Decree 333/2017, extending the ban for another five years, i.e. not extending the ban. However, in 2022 and 2023, imports of used clothing remained marginal.
Due to restrictions in effect until 2022, Argentina’s imports of used clothing have historically remained at marginal levels. However, from 2024 and especially from 2025 onwards, exponential growth was observed, which significantly changed the market dynamics.
The turnaround will begin in 2024, although imported volumes and volumes are still small in absolute terms, represent a trend reversal compared to previous years. The final expansion will take place in 2025. During the January-October period, imports of used clothing amounted to $3.73 million FOB (Free on board) and 3,521,456 kilos. This represents an extraordinary increase in value of 11,728% and a volume increase of 26,538% compared to the previous year. Based on the share of total imported clothing, the share of used clothing is 11%
This growth in the import of used clothing must be carried out within the global model of ““Fast fashion”one of the most polluting sectors in the world. This model is based on the accelerated, massive production and low production costs in terms of labor, taxes and the environment, resulting in structural surpluses of garments that cannot find sales in the source markets.
Job losses and model comparison
The managing director of the ProTejer Foundation warned against this “As of September this year, 16,000 jobs have already been lost in the industry. This number could rise even further if the situation does not change in the short term.”
Comparing this economic model to other periods in the country, Makari noted that this is the case “Argentina went through several opening processes with an increase in income. One might think that it has similarities with the 70s, 90s and the Macri regime. But this process was much faster and more complex in that sense.” The China of the 1990s, with this level of production and this speed, is not the China of today. “There was also no e-commerce, which gave the imported products even more market.”
This is how you gain competitiveness
In this extremely complicated context, the textile world requires measures to become more competitive and compete on an equal footing with imported textiles. Makari assures that “countries like the USA have measures to protect their industries, Europe, Brazil, Korea, the developed countries are moving in this direction and Argentina is against it.” There is no developed country that is not an industrial power. Without industry there is no prosperity.”
According to the ProTejar policy, “We have the same technology as energy countries. Competitiveness is determined by the level of the exchange rate and the review of the tax structure. For a garment in a large purchasing chain, taxes account for 50% of the final price. In addition “The government reduced tariffs on imported products from 35% to 20%, but without reducing the cost of national production.”
FN
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