Import restrictions become cause for concern among Brazilian shoemaker

The new payment rules geared toward imports established by the Argentine government worry the footwear sector. The neighboring country is the second-largest importer of Brazilian footwear, behind the United States.

For Haroldo Ferreira, executive president of Abicalçados – an association that represents the Brazilian footwear industry – the imposition of a limit of six months to conclude the payment of goods imported into Argentina could make the export operation of some Brazilian companies unfeasible.

Last week, the Central Bank of the Argentine Republic (BCRA) changed the conditions of access to the Single Exchange Market for payment of imports. Until September 30, 2022, the payments for goods will only be released 180 days after the arrival. The measure tends to temporarily limit imports to contain the outflow of foreign exchange and maintain the level of international reserves.

The news took the Brazilian footwear industry by surprise at a time it was growing again, says Abicalçados. Between January and May, footwear exports totaled 64.24 million pairs, which generated US$ 538.72 million, a growth of 30.3% in volume and 66.5% in revenue compared to last year.

See below the track record of Brazilian footwear exports from January 2021 to May 2022. The data is from Dataliner.

Brazilian footwear exports to Argentina | Jan 2021 – May 2022 | TEU

Source: DataLiner (click here to request a demo)

In the period, Argentines imported 6.82 million pairs, which generated US$ 74.62 million, increases of 64% and 93.7%, respectively, compared to the same period in 2021.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/empresas/noticia/2022/07/04/restricoes-as-importacoes-na-argentina-preocupam-setor-calcadista-brasileiro.ghtml

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