Smuggling Hits Six in 10 Argentine Industrial Firms, Which Demand Tighter Government Controls

For Argentina’s industrial companies, weak domestic demand now comes with another pressure: imported goods that firms say enter or circulate through unfair competition, and in some cases through outright smuggling.

The problem has become significant enough that nearly six out of 10 companies surveyed by the Center for Studies of the Argentine Industrial Union rated its impact as high or very high. Specifically, 35% called the impact high and 24.7% called it very high.

The most frequently reported consequence was falling sales, cited by 48.4% of companies that reported a high or very high impact. Businesses also pointed to pressure to cut prices, reported by 15.2%, lower profitability, cited by 13.3%, and lost market share, cited by 10.9%.

Metals ranked as the most exposed sector, with 88.2% of companies reporting a high or very high impact from unfair competition and smuggling. Textiles followed at 84.6%, while clothing, leather and footwear reached 76.2%. Paper, cardboard and wood, auto parts, and rubber and plastics also appeared among the most affected sectors.

The “other industries” category, which includes toys, furniture, mattresses, equipment, musical instruments and sporting goods, recorded an 86.3% high or very high impact. Food, beverages and tobacco reported lower exposure, although 34.8% rated the impact high and 8.7% very high.

Half of the surveyed companies said foreign goods reach the market at artificially low prices, putting pressure on local production prices. Other problems included missing mandatory certifications, identified by 15.3%, lack of traceability, cited by 13.8%, and sales without invoices or other forms of informality, cited by 13.2%. Wholesalers and distributors were the most frequently mentioned sales channels, followed by retail stores, international direct-to-consumer platforms, social networks and marketplaces.