Footwear Industry: Brazil and Argentina unite over Mercosur tariff

Representatives of the Brazilian Association of Footwear Industries (Abicalçados) and the Argentine Footwear Industry Chamber (CIC) met on the morning of March 7 to discuss bilateral trade in the sector. The highlight of the agenda was the importance of preserving Mercosur’s Common External Tariff (CET) to prevent a possible “invasion” of Chinese products in both countries.

According to data from Abicalçados, almost US$ 50 million in Chinese footwear entered Brazil last year, 34.6% more than in 2021. The result was even more worrying in Argentina, with the equivalent of US$ 88.7 million in footwear from China entering the neighboring country, an increase of 438% compared to 2021.

See below Brazil and Argentina’s imports of Chinese footwear between Jan 2019 and Jan 2023. The data is from DataLiner.

Footwear imports from China | Jan 2019 – Jan 2023 | TEUs

Source: DataLiner (click here to request a demo)

“The elimination of the CET, which is currently set at 35% for shoes imported from countries outside Mercosur, would pave the way for a Chinese invasion of Brazilian and Argentine shelves,” warns the president-executive of Abicalçados, Haroldo Ferreira, emphasizing that it is a matter of trade defense, not protectionism.

“The indiscriminate entry of Asian shoes would cause a crash in the sector, generating a wave of unemployment. We cannot compete on equal terms with a country that engages in dumping (export prices below those used in the domestic market) and does not adhere to labor and environmental laws,” he adds.

The Footwear Industry meeting also discussed the creation of a possible single shared currency for Mercosur, which the governments of both countries are debating, the normalization of payment flows for imports in Argentina, and the growing importance of sustainability in the footwear production chain.

“We present Sustainable Origin, the only ESG certification program for the footwear chain in the world. Argentine colleagues highlighted this importance, even as a way of competing with Asian footwear, which does not have the appeal that consumers demand worldwide,” says the Abicalçados executive.

Source: Comex do Brasil

To read the original news report, access: https://www.comexdobrasil.com/brasil-e-argentina-unidos-pela-manutencao-da-tec-do-mercosul-e-contra-invasao-do-mercado-por-calcados-asiaticos

Sharing is caring!