Latin American shoemakers team up to battle ‘unfair competition’
26/07/2023
Latin America produced more than 1.5 billion pairs in 2022, 7% of global production, according to Brazilian association Abicalçados.
Brazil produced 849 million pairs last year, of which 143 million were exported.
The CEO of Abicalçados, Haroldo Ferreira, said: "We have many agendas in common, such as unfair competition with Asian countries, the problem of digital platforms and sustainability, among others. The meeting was important for the associations to discuss ways to improve the competitiveness of the footwear industry on the continent.
"Despite being a common problem in Latin American countries that produce footwear, only Brazil, Argentina and Peru maintain anti-dumping mechanisms against footwear imported from China.”
Mexico made 203 million pairs last year, a growth of 7.9% compared with 2021.
Mauricio Battaglia, president of the Chamber of Footwear Industries of the State of Guanajuato (CICEG) and the National Chamber of Footwear Industry (CANAICAL), in Mexico, said: “2021 was a year of an irregular recovery and in 2022, despite the challenges, we had growth. Even so, we are still 17% below 2019 levels.
“In 2010, our share in the industry GDP was almost 0.7%, and today it is just over 0.4%. Unfair competition, which puts shoes on the market below the cost of manufacture, has been harming the sector a lot.
“It was very important to meet all the presidents of the footwear chambers of Latin America and know that everyone is fighting illegality in their countries. We are forming a Latin American footwear bloc, which will certainly accelerate the development of our industries."
Battaglia says the Chambers in Mexico are leading efforts to create an ESG (environmental and social governance) culture, including promoting the use of water-based adhesives and codes of ethics between manufacturers and suppliers.
With an estimated production of 130 million pairs (2022), a growth of 22% compared to 2021, Argentina has the third-largest footwear industry in Latin America. With the anti-dumping measure against footwear imported from China, the local industry has official support for customs controls and mitigation of tax evasion.
Colombia has the fourth-largest footwear industry in Latin America, with an estimated production of 54 million pairs. Wilian Parrado, vice-president of the Colombian Association of Footwear, Leather and Manufacturing Industrialists (Acicam), said: “We have to foster local industries, reducing dependence on the Asian market."
Problems including smuggling and underbilled imports hurt shoe companies. “We need to strengthen communication between our customs and jointly adopt strategies to curb informality and unfair competition in our countries," he added.
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