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    Summary: Import Restrictions In Argentina Forced Foreign Enterprises To "Retreat From Difficulties".

    2012/10/4 20:23:00 11

    Louis WeedonArgentinaTrade

     

    Due to difficulties in operation, the luxury brand KENZO3 of Louis Weedon, France, decided to evacuate the Argentina market and become another victim of Argentina's import restriction policy. It also highlighted Argentina's efforts to strengthen import restrictions to protect its industries.


    It is reported that the KENZO brand, which has been located in Argentina for many years, withdrew from the Argentina financial crisis and returned to Argentina market in 2007. Currently, it has a flagship flagship store in Bugli Rich Plaza, Buenos Aires gold commercial area.

    The Argentina business chronicle quoted the head of the store as saying that the main reason for the withdrawal was business.


    Previously,

    Louis Vuitton

    International famous brands have been shut down in stores in the capital Buenos Aires.

    Analysts believe that the withdrawal of this internationally famous brand may be related to the import restrictions imposed by the Argentina government on textiles, footwear and household appliances at the beginning of the year.


    In early February this year,

    Argentina

    The government has begun to implement new restrictive import measures. All import commodities must be declared in advance, and the import procedures can be processed only after approval is obtained, and the US dollar needed for import trade is purchased from the central bank.

    The industry believes that Argentina's move is aimed at strengthening import restrictions on products such as textiles, footwear and household appliances to protect its related industries.


    With the strengthening of import restrictions, the foreign enterprises in Afghanistan are obviously more difficult to operate.

    In addition to import restrictions, foreign exchange control leads to obstacles faced by foreign enterprises in remittance profits.

    In addition, in order to ensure a favorable trade surplus, the government is obliged to import foreign products at the same time, and has the obligation to help Argentina export considerable amounts of products. This has also made some foreign auto companies "do nothing" and sign an export agreement on unrelated products such as edible oil and rice, in order to get the quota of imported car.


    The Argentina newspaper quoted the report issued by the global trade early warning department, saying that Argentina's

    Trade

    Protection measures amounted to 148, ranking first in the world. Specific measures include levying anti-dumping duties, implementing non automatic import licensing system and setting up reference prices for imported goods.


    Intensified trade restrictions have made Argentina's relations with its trading partners increasingly tense.

    In March this year, more than 40 WTO members, including the United States, the European Union and Japan, submitted a joint statement to WTO, criticizing the import restrictions imposed by Argentina on their exports.

    In May, the European Union put forward a request for consultation on the Argentina trade restrictive measures under the WTO dispute settlement mechanism.


    In the face of external accusations, the Ministry of industry of Argentina announced that the trade restrictions adopted by Argentina have safeguarded the industry of footwear, textiles, toys and household appliances, and protected at least 1 million jobs.

    Christina, President of Argentina, said that in order to protect employment and production, Argentina will continue to implement and strengthen import restrictive measures.


    Analysts said that at present, the government of Argentina faces two major tasks: first, to ensure more employment and two to ensure a favorable balance of trade.

    With the unemployment rate rising, the government tried to increase employment opportunities by restricting imports to support local industries. In the past ten months, the US dollar savings have lost nearly 45% US $8 billion 600 million, ensuring that the trade surplus is of great significance for stabilizing the value of our currency and curbing inflation.

    Against this background, import restrictions are expected to be further strengthened.


    On the other hand, contradictions and disputes between Argentina and other countries and regions in the field of economic and trade will be even more prominent if the issue of mutually beneficial cooperation can not be properly solved.

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