Argentina’s manufacturing stalls as Milei’s trade liberalization floods market with imports

President Javier Milei’s aggressive trade reforms have dismantled long-standing protectionist measures, prompting an influx of cheap imports that have crippled domestic manufacturers. Emmanuel Fernandez’s shoe factory Kioshi, once a sizable operation in the south of Buenos Aires, now runs at minimal capacity with only 14 employees producing a quarter of its previous output. Nationwide, about 40% of industrial capacity sits idle and manufacturing output fell sharply between June and July, the steepest decline in 16 months.

The Argentine Industrial Union cites the loss of roughly 90,000 industrial jobs and the closure of nearly 30,000 firms over three years. While Economy Minister Luis Caputo defends the policy as beneficial for consumers, workers like former Clariant lab technician Miguel Marquez are forced into informal jobs such as ride-hailing. Small firms such as Martin Blunt’s string-making company have reduced workweeks, and employees report heightened anxiety over job security.