FocusArgentina textile rules will not hit chems

By Cristina Kroll

BUENOS AIRES (ICIS news)--New measures to protect Argentina’s textile producers from imports probably will not have much of an impact on prices of materials used in synthetics such as nylon and polyester, a chemical industry source said on Monday.

In order to protect its textile makers, Argentina has set reference prices for more than 50 textile products imported from surrounding Mersosur trade region countries and from Asia.

Textiles made from synthetic fibres are among those included in the reference price list.

The measure seeks to discourage the dumping of products from countries such as Brazil and China. More than 60% of Argentina’s textile imports came from those countries during the first eight months of this year, according to the National Institute of Statistics and Census, INDEC. Textile imports increased 35% during that period from the same eight months in 2007, according to INDEC.

“The measure will not stop imports but it will extend administrative procedures and increase the controls textile products go through in order to enter the country,” said Jose Maria Fumagalli, executive director of the Chemical and Petrochemical Industry Chamber (CIQyP).

“Therefore, the amount of imported textile goods would remain the same, the local production wouldn’t experience any changes and chemical raw material values for the textile industry would be unaffected”, continued the executive.

“The goal of this measure is not to prevent imports but to avoid under-invoicing”, said Eduardo Detoma, spokesperson for the Argentinean Textile Industries Federation (FITA) “Raw materials prices would remain the same since the demand won’t change,” he added.

In 2007 Argentina used 67,000 tonnes of synthetic fibres and filaments according to Fabian Criscuolo, a spokesperson for the Chamber of the Manufactured Fibres Industry (CIFIM).

Local producers for chemicals used in textile production, such as polyester and nylon, include Invista, SNIAFA, and Mafissa.

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