A suspension of the export of raw material: Argentine raw hides are not to leave the country. That’s the demand advanced by the representatives of FATICA (Federación Argentina de Trabajadores del Cuero y Afines) to the government. The same organization had already sounded an alarm regarding the difficulties in sourcing raw materials on the local market. According to FATICA, the government should suspend the export authorization for raw hides (as previously done for meat) to avoid the collapse of the leather goods’ production at a national level.
The concerns
Argentina’s government had suspended all meat exports for a month in mid-May. The objective was that of countering the local price increments. But the problem also had to do with tanners, as they showcased just a day after, when they highlighted how the price of raw material had strongly increased due to low supply. The problem, they said, had to do with the export duty imposed by the meat industry. And so, according to data supplied by these same organizations, 80% of Argentina’s raw hides ended up outside of the country. Entrepreneurs asked authorities to adopt a system that would protect the tanning segment and, as a consequence, protect the entire chain. The proposed solution was to bring the duty back to pre-pandemic levels.
A suspension of exports
Now FATICA raises the bar. The association that represents tanners and entrepreneurs of the leather chain, as reported by baenegocios.com, asked the government to suspend the authoriziation to export raw hides out of the country. The goal is to “defend the national industry and protect jobs that make up the value chain”. Always according to FATICA’s members, if the government doesn’t intervene the entire tanning industry could collapse, leading over 22,000 people to lose their employment.
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