Background and Relevance of the Situation
In Argentina, the textile and garment manufacturing sector has been severely impacted over the past 18 months. According to a report by ProTejer, an organization advocating for the industry, 381 companies have closed, and 11,500 jobs have been lost. This represents 6% of the total companies closed nationally (17,600) and nearly 10% of the overall job losses (102,000) from December 2023 to June 2025.
The Current Economic Context
The combination of an open economy policy, reduced tariffs, and deregulation during a prolonged recession has had a “devastating” impact on the industrial sector, according to industry leaders. They warn that instead of improving, the situation is worsening and affecting other sectors.
Textile Industry as an Economic Indicator
The textile and garment industry is often seen as an “economic barometer” because people tend to cut back on clothing purchases during economic downturns. Industry representatives argue that the current situation mirrors previous economic cycles, where textile decline foreshadowed broader economic issues.
Key Players and Their Perspectives
Luciano Galfione, Fundación Textil Argentino
Luciano Galfione, head of the Fundación Textil Argentino, criticizes the lack of structural reforms before implementing open-market policies. He emphasizes that Argentina, with a population of 50 million, cannot survive without its textile industry, which generates 3.5 jobs per percentage point of growth—more than agriculture.
Pedro Bergaglio, Sweater Production Subsector
Pedro Bergaglio, representing the sweater production subsector, predicts that 30% of companies in the Capital Federal and Greater Buenos Aires regions will close by the end of the year. The recent crisis at Mauro Sergio, one of Argentina’s largest textile firms, serves as a warning: the company has laid off 150 workers and reduced production by 20%.
Industry Performance Indicators
The Industrial Capacity Utilization Rate averages only 44%, indicating that more than half of Argentina’s machinery and technology remains idle after investing $1.5 billion in the past three years.
Import and Export Trends
While import volumes have surged due to platforms like Shein and Temu, export figures show a decline of 2% over the past two quarters. The lack of competitiveness in the domestic market has contributed to this downturn.
