CIMA calls for protectionism for Argentina‘s leather industry. At the end of October, with the election of Peronist Alberto Fernández at Casa Rosada, Mauricio Macri season ended, a presidency marked by openness to free trade. Now CIMA (Cámara Industrial de Manufacturas del Cuero y Afines) asks the new Executive for protectionism, starting with relations with partners in the Mercosul area.
The reference is to the request of Brazilian president Jair Bolsonaro to lower duties that regulate the interchange between the two countries. According to the top management of CIMA, “there are not minimum conditions of strength and stability of the productive web, for us to derive a positive impulse for the supply chain”. For this reason, comeback.com reports, the acronym that represents manufacture of the leather area recommends leaving it alone, or lowering customs barriers only in the face of incentives and stimuli for the competitiveness of companies from Agentina.
The Argentine crisis
The assumption of CIMA, is that Argentine supply chain has already had too much liberalism. From 2015 to 2018, imports increased by 122%, while fixed costs are rising and domestic consumption is decreasing. In the last 4 years, the association goes on, the turnover has contracted by 60%, more than 100 companies have closed, and 3,500 jobs have been lost. CIMA warns that 2019 “will close with a contraction of business similar to that experienced in 2018”. This is why CIMA calls for protectionism for the Argentinian leather industry.