<span>STORY: When bridal gown designer Valentina Schuchner was putting the finishing touches on her bridal collection for Buenos Aires Fashion Week, she said the mood was anything but festive.</span><span>“I think it’s a bit of a weird environment, even emotionally. Everyone is a bit sadder and more stressed. I’m obviously generalizing, but you hear it’s getting harder to make ends meet and a lot of brands are closing down.”</span><span>Argentina’s textile and clothing industry is facing one of its worst recessions in decades as ultra-cheap imports, many from Chinese fast-fashion platforms, flood the market.</span><span>President Javier Milley has made opening markets one of his goals, aiming to loosen trade controls, promote competition and lower prices.</span><span>Last year, his administration slashed tariffs on clothing and footwear from 35% to 20%.</span><span>Cross-border e-commerce order rules have also been relaxed, and the tax-free threshold for express delivery goods has been raised to US$400 in 2024.</span><span>Milley’s policies helped curb inflation, stabilize prices and boost economic activity in some sectors, including agriculture.</span><span>But when cheaper imports are added to the mix, domestic industries such as textiles feel the squeeze.</span><span>At the family-run Amesud textile mill outside Buenos Aires, CEO David Kim said the plant was operating at just 30% capacity.</span><span>“The government wants us to compete. We have no problem competing, but we need them not to burden us with taxes, labor costs and union fees that don’t exist in other countries.”</span><span>A spokesman for the Mire Trade Ministry declined to comment.</span><span>Argentina’s main apparel industry trade group said door-to-door imports from other countries shipped directly to consumers’ homes nearly quadrupled last year. </span><span>China is a special beneficiary.</span><span>Industry group Fundacion Pro Tejer said China’s textile and clothing import share will soar from about 55% in 2022 to 70% in 2025, driven by Shein and Temu.</span><span>Meanwhile, Argentina’s textile industry has cut 16% of its workforce since 2023, shrinking from about 121,000 employees to 102,000 at the end of last year, according to industry data released in February.</span><span>Kim said his company has invested $10 million in imported machinery over the past decade to meet the needs of customers such as Nike, Puma and local children’s clothing brand Mimo & Co.</span><span>But now, most of the equipment sits idle.</span><span>“We’ve been through many crises in this country, but this is the worst in our history. Not only is it the most money we’ve lost, but it’s been the longest and it’s the one where we’ve had to give up the most people.”</span>
