Caution For Chinese Shoe Products Entering The Latin American Market

Experts from the Academy of Social Sciences talk about China's products entering the Latin American market and Latin American countries as the first group of developing countries. As the industrial structure is similar to ours, in recent years, the export products have been restricted frequently. Anti-dumping cases have occurred frequently.

A similar industrial structure has led to high barriers. It is reported that with the large number of Chinese textiles entering the US market in recent years, Mexico's textile and garment industry has lost more than 20% jobs.

In fact, Mexico, Columbia, Peru and other Latin American countries have filed anti-dumping proceedings against Chinese goods, mainly in textiles, home appliances, furniture and other fields.

From the standpoint of our country, we can see that Latin American countries are just complementing our industries, and we import raw materials from that country to export Latin America and other international markets.

However, the position of Latin American countries not only affects their development and development in overseas markets, but also occupies part of Latin American local market share.

Wu Guoping, director of the Economic Research Office of the Latin American Institute of the Chinese Academy of Social Sciences, said.

Wu Guoping told reporters that although Latin American countries have restricted their exports to local products, the trade protection measures of different countries are different.

For example, Mexico is automatically restricting the importation of products from China in accordance with the provisions of the WTO rules. Although, according to the regulations, all trade restrictions will be abolished in December this year, in fact, the total cancellation is unlikely to be controlled in key areas such as textiles. Argentina imports products from China must be approved by the customs. If the price of imports is lower than the average price of the world's equivalent products, it is necessary to raise taxes, which is determined by the price of the same products in the customs catalogue.

Wu Guoping said that China's products will enter the Latin American market, and if Latin American countries will have some influence on local related industries, such as shoes and textiles, Latin American countries will take some trade protection measures.

Although the measures adopted are aimed at all imported products that are impacting on the domestic industry, however, because the number of products imported from China is large and most of them are labor-intensive products, it can be said that these measures are mainly targeted at China.

"In this regard, we should adjust the industrial structure and increase the added value of products.

In the long run, it can not only avoid excessive trade friction with these countries, but also expand the income of individual products. "

He said.

Wu Guoping told reporters: "unlike developed countries, the trade protection measures adopted by Latin American countries are mostly traditional ones, that is, more anti-dumping investigations are carried out. Through anti-dumping, higher anti-dumping duties are imposed on China's export products, while technical barriers are less."

Enterprises entering the Latin American market must be cautious and rich in resources and loose free trade policy environment, so that many domestic enterprises have invested and built factories in Latin American countries.

Latin America has become a hot area for Chinese enterprises to invest overseas.

Although there are some advantages in resources and geographical environment for investment in factories in Latin America, there are still many factors to consider when entering enterprises.

It is understood that Shougang set up factories in Peru, and the trade union proposed that enterprises should increase welfare and raise wages.

In June last year, the trade union announced an unlimited strike again. Shougang suffered direct economic losses of 3 million 510 thousand US dollars.

In this regard, Wu Guoping reminded Chinese enterprises to enter the Latin American market to be considered in many ways.

First of all, unlike the situation in China, Latin American countries have relatively strict protection of labor rights and interests, and have a relatively complete labor policy.

Labor in Latin America also has the freedom of association and strike, which is often ignored by enterprises. Secondly, government policies are easy to change. For example, after some governments change, it is very likely that they will make a big adjustment to their previous policies, which makes it difficult for foreign capital enterprises to do so.

For example, recently, the Ecuador government increased the proportion of foreign invested enterprises in the oil field to the state from 50% to 99%. In addition, the institutional regulations of developing countries are not perfect. Compared with the developed countries, the market risk is relatively large. There are often no corresponding laws to protect the enterprises. Finally, cultural risks can not be underestimated. Spanish is the main business activity in some areas.

In addition, different countries in Latin America have their own other risks, which need to be considered.