How much will the price of clothing increase in 12 months? Photo: Jose Gutierrez / The Andes
In Argentina, up to 86% more are paid on electronics and 59% more on clothing than in Brazil and Mexico. This is highlighted in a report by the Córdoba Stock Exchange, which conducted a survey in between the sectors most protected by the State.
In that sense, angThey warned that despite the financial cost the Government is assuming to promote the national industry, the local import substitution system is inadequate andin many cases, increases the price assumed by consumers.
Considering that “the most outstanding experience in the sector is the assembly or local production of computers in Tierra del Fuego ”, the Economic Research Institute (IIE) of the Córdoba Stock Exchange analyzed the prices of notebooks in the local market and compared them to multinational brands with official stores in Argentina, Brazil and Mexico .
The study concluded that “The prices of models sold in Argentina are more expensive in dollars than those made in the other two countries”. According to the survey, in Brazil there is only one model that matches, and it costs up to 10% more expensive in the local market; while in Mexico there are more types on average, and the values are between 19% and 86% higher at the local level ”.
“On the argument that local production allows for cost savings and foreign currency, the Government suggests that ‘no spare sector’ and promotes, directly and indirectly, regulations and measures to protect and promote national industryfocused on import substitution, as has happened on several occasions throughout Argentina’s history, ”the study said.
In the same line, IIE estimates that this year the cost of promotional schemes this would mean approximately 0.8% of GDP, which is equivalent to 30% of the fiscal deficit target agreed with the International Monetary Fund (IMF) or in the budget of all public works undertaken by the Nation relating to energy, transportation, education, housing and water in 2021.
However, as “Countries are not competitive to do everything”, After examining the prices of products with protection from the State, the study concluded that “the measures implemented by the Government, in many cases, increase the price assumed by consumers. “
how are electronic products
Within the protectionist regime, the electronics sector represents half of the financial cost in the concept of economic development and that cost, in product terms.2019 values are now almost double.
The study concluded that the prices of the models sold at Argentina is more expensive in dollars than those produced in the other two countries. In Brazil there is only one model that matches, and it costs up to 10% more expensive in the local market; while in Mexico there are more varieties in common, and values are between 19% and 86% higher locally.
According to the Córdoba Stock Exchange survey, the results are no different for notebooks made in the local market by the brands that lead in sales in the country: BGH, EXO and Noblex, according to the Mercado Libre e-commerce platform.
The BGH brand, in partnership with Positivo, makes equipment for Argentina and Brazil. Locally made models is between 35% and 50% more expensive than their Brazilian counterparts.
In the case of notebooks made and sold exclusively on the domestic market -EXO and Noblex, the best -sellers, consumers pay between 11% and 58% more in dollars than their equivalents in Brazil and Mexico.
EXO, the best -selling model, is worth it between 11% and 21% more than its equivalent at Dell in Brazil and 23% more than Lenovo. It is also 58% more expensive than HP in Mexico.
Noblex’s most commercial model is 37% more expensive than a similar one from Positivo BGH in Brazil, gap reaching 50% for a similar one from Philco. In comparison to Mexico, it costs 21% more than an equivalent model from ASUS and 53% more than a Qian.
Textile industry
The electronics sector is not the only one with protection from the State. Also among the most protected are the textile and clothing sectors. “Non-Automatic Licenses (LNA) are the main tool applied in this case: since 2017 there has been a gradual reduction of NLA, mainly for first links. Today, they affect an average of 56% for the entire value chain. Garments have almost full protection: 94%”taught report prepared by Fabio Ezequiel Ventre, Miranda Bandoni and Valentina Vijarra
In April, on the overall Consumer Price Index (CPI) was 6%, clothing and footwear prices rose 9.9%. In year-on-year comparison, the values were 58% and 73.4%, respectively.
Accumulated comparison of CPI vs. Clothing increase
Like electronics, Argentines pay more for clothing than their peers in the region. A dress costs almost no more in Brazil and 25% higher than in Mexico. One pair of jeans, 29% more than Brazil and 36% more than Mexico. In dress shoes, the gap is 59% in a Brazilian pair and 38% in a Mexican.
Running shoes have the biggest overall differences: 50% more than Brazil and Mexico. Also, in the local market they also cost more than New York, London or Tokyo, three of the most expensive cities in the world.
The results of the IIE report confirm that “Replacing imports is ineffective, because it does not reduce the cost assumed by local consumers; on the contrary, on more than one occasion, it increases them ”.
YN
Source: Clarin
