Statements from Economy Minister Luis Caputo about the price of clothing triggered strong reactions this week with critics accusing the official of failing to support domestic industry.
Caputo, 60, was sharply criticised by political opponents, business leaders and designers from the textile industry after complaining about the high prices of clothing and footwear in Argentina.
“I never bought clothes in Argentina in my life because it was daylight robbery so those of us who had the chance to travel purchased elsewhere,” said Caputo in an interview.
“Forty-seven million Argentines have had to pay for their textiles and footwear twice, thrice, four or even 10 times as much as they are worth in the world,” he continued.
The comments came amid a wider debate over imports, employment levels, the future of local industry and slumping consumption.
The minister’s words were harshly questioned by Claudio Drescher, president of the Argentine Chamber of the Garment Industry (CIAI, in its Spanish acronym) and owner of the popular womenswear brand Jazmín Chebar, who took the criticism one step further.
“Don’t buy clothes and don’t buy cars either because they cost double in Argentina and don’t buy a Big Mac because [in Argentina] it is the second-most expensive in the world and don’t go to the supermarket because food in Argentina costs more than in the European common market,” he declared with a heavy dose of sarcasm.
In radio interviews, Drescher went further and accused the officials of avoiding the sector’s underlying problems.
“They have become part of the caste because they do not resolve the issues but evade them, always seeking short cuts in order not to resolve the fundamental questions,” he declared.
The business leader then took direct aim at Caputo: “If he had been a businessman, he would already be broke since he could not run a company because he did not get any decisions right in his previous stints in government.”
Drescher described the minister’s approach as “selective” and said the discussion over elevated prices exceeds the textile sector.
He questioned the comparisons with Asian countries, remarking: “He wants to compare Bangladesh with Argentina, forgetting that in two years they have not managed to dismantle a single tax.”
“We Argentine businessmen do not want to return to the past,” he added, referring to the Peronist opposition. “That protectionism was no good. But this naive, outdated liberalism, I would say that it’s suicide.”
The criticism was echoed by designer Benito Fernández, who described the impact of the crisis on activity.
“I’ve had to close down and throw out all the people who have worked with me for so many years,” he related.
“Seven out of every 10 looms are at a standstill in Argentina today” in a context of high taxes, inflation of dollar costs and heavy falls in consumption, Fernández argued.
The controversy was deepened after statements by Cabinet Chief Manuel Adorni, who maintained in a television interview midweek that “importing jeans does not cost anybody a job.”
That affirmation was rejected by the economist Julia Strada, who responded on social networks: “Of course jobs are lost because bringing in products manufactured here generates crisis and the closure of Argentine companies,” harshly criticising the government stance.
– TIMES/NA/PERFIL
Comments