Government will decide in August if it applies safeguards

In order to reflect the conditions in which the garment industry operates, the Indecopi resumed investigations to determine whether it is necessary to apply safeguards to imported garments.

Said report will be released at the end of June according to Indecopi, and will be sent to the Executive’s Multisectoral Commission —composed of the Ministry of Economy and Finance (MEF), Production (Produce) and Foreign Trade and Tourism (Mincetur)— so that in a month they evaluate whether to initiate a series of consultations with criteria of the World Trade Organization (WTO), as well as another 15 days to decide whether or not to apply the safeguards.

In this sense, the head of the Mincetur, Roberto Sánchez, emphasized after meeting with the mypes of Gamarra —along with his counterpart from Produce— that in the face of the current situation in the sector, the Government of Pedro Castillo “proposes a strong multisectoral intervention and at various levels for its recovery”, Added to that “a social market economy with fair conditions for the national textile industry is necessary.”

In this regard, José Luis Muñoz, president of the National Union of Textile Entrepreneurs (Unete), stressed that these meetings were not attended by the Minister of Economy, Oscar Graham, who stated in a conference that “they will be respectful of the procedure” to give their opinion.

Muñoz recalled that during Francisco Sagasti’s administration, despite Indecopi’s recommendation, a criterion alien to the interests of local industry prevailed in the Multisectoral Commission, for which “mypes were turned their backs.” In the event that their application is denied again, it indicates that they will opt for protests.

imports grow

According to the National Society of Industries (SNI), during 2021, 367 million 700,000 units entered, 13.9% compared to 2020, and since 2016 an accumulated growth of 82.3% has been observed.

Antonio Castillo, manager of Economic Studies of the SNI, explained that despite the ravages of COVID-19, the increase in imports persists, while the national production of garments still has not recovered compared to 2019 (see infographic).

Imports enter at a lower price

According to Susana Saldaña, president of the Gamarra Peru Association, the cost of real production per garment – ​​a polo shirt, for example – reaches S/ 10.00, while imported garments cost less than one dollar and are marketed at a lower price. relatively older. Saldaña points out that they currently occupy up to 97% of the market, for which the mypes have not achieved a solid reactivation.