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Argentina industrial sector faces crisis amid rising imports and production declines
Argentina is facing a significant industrial crisis characterized by declining production, rising unemployment, and a surge in imports. The textile sector is particularly vulnerable, with imports now supplying approximately 70% of the domestic market, a sharp departure from the historical 50/50 split between national and foreign products. During the first half of the year, textile production fell by 24.4%, leaving industrial capacity utilization at just 39%.
While imports of raw materials, yarns, and fabrics have decreased, there has been a record increase in the import of finished garments, which rose 62% in volume. Industry representatives, including the Fundación Pro Tejer and FITA, have warned of 'fraudulent competition' and blamed the crisis on trade liberalization, deregulation, and the appreciation of the real exchange rate.
Beyond textiles, the broader manufacturing sector is struggling. Estimates suggest that up to 3,300 industries could close by 2026 if current trends persist. The footwear industry has already reported the loss of 9,000 jobs, and the UIA estimates that 90,000 industrial jobs have been eliminated since August 2023. Additionally, SME retail sales saw a 2.4% cumulative decline in the first eight months of the year, driven by reduced purchasing power and rising service costs.
Entities
Argentina · Confederación Argentina de la Mediana Empresa · Federación de Industrias Textiles Argentinas · Fundación Pro Tejer · Javier Milei · Union Industrial Argentina · Unión de Trabajadores de la Industria del Calzado de la República Argentina
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Textile production fell 24.4% during the first half of the year compared to the same period in 2025. www.pausa.com.ar · www.filo.news
- [● 5 SOURCES] Imports of raw materials fell by 33% during the first half of the year. lapioneradeclorinda.com · federalaldia.com.ar · labandadiario.com · www.pausa.com.ar · www.filo.news
- [● 3 SOURCES] Imports of finished clothing increased by 62% in volume during the first half of the year. lapioneradeclorinda.com · labandadiario.com · www.filo.news
- [DISPUTED] The use of installed industrial capacity in the textile sector dropped to 39%. www.pausa.com.ar · www.filo.news
- [● 5 SOURCES] Imported textile and clothing products accounted for approximately 70% of the Argentine market during the first half of the year. lapioneradeclorinda.com · federalaldia.com.ar · labandadiario.com · www.pausa.com.ar · www.filo.news
- [○ 1 SOURCE] Approximately 90,000 industrial jobs have been lost since August 2023. www.spacemoney.com.br
- [○ 1 SOURCE] SME retail sales fell 0.2% in August compared to the same month in 2025. datanews.com.ar
- [○ 1 SOURCE] If current dynamics continue, approximately 3,300 industries could close by 2026. cuestionentrerriana.com.ar