Government Measures Impacting Textile Industry in Colombia: Implications for Brands and Imports

2024-02-18 23:15:08

He Government In recent days, it has launched a package of measures that affect everything in the textile sector that works in the country. It is for this reason that companies have been forced to stop importing their raw materials due to the high costs in tariffs.

The truth is that, after a year since decree 2598 of December 23, 2022 was implemented, which implemented a 40% tariff on importers of clothing under certain parameters, which caused some stores to register worrying statistics and was the Colombian company Koaj, which was most affected. The data was collected through a study by Mall & Retail, where they express that in 2023 the textile brands that operate in Colombia Their imports decreased by 26.3% compared to the previous year, thus going from a sum of 745.8 million dollars in imports to 549.7 in the last year.

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Koaj. Source: Twitter @FNW_LATAM

Although at one time it was expected that this tariff would boost national production, according to specialist Leopoldo Vargas, this increase has not contributed significantly. According to the interviewee, the only beneficiary has been the Government and the smugglers: “The measure has increased the final cost of clothing for Colombians, increased smuggling and has allowed taxes to be raised, with which the only beneficiary has been the government,” said Vargas.

Following the line of this study, the brands most affected by government measures are:

  • Koaj: this was the brand from Colombia that presented the most worrying drop in its imports with a decrease of 60.6%. From the more than 50 million dollars that it imported to Colombia in 2022, it went on to only import 19.8 million dollars in 2023.
  • Falabella: this house of articles of various types, including textiles, presented decreases in its imports between 2022 and 2023 by 44.3%
  • Adidas: this is a sports fashion company that showed a drop in the same aspect of 23% for the last year.

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