Smuggling surge floods Argentine markets with cheap goods, costing billions in taxes
Argentina is seeing a sharp rise in illegal imports of items ranging from clothing to electronics, costing an estimated $2.3 billion in lost tax revenue in 2025.
According to a MAP study, smuggled merchandise surged in Argentina during 2025, depriving the treasury of about $2.3 billion, or 0.3% of GDP. Goods enter both through border crossings with Chile, Bolivia and Paraguay and via “legal smuggling” where import values are severely under-declared. The flood affects a wide range of products, from apparel and footwear to thermoses made with prohibited toxic metals and mobile phones, many of which are sourced from Paraguay.
Business owners report that the glut has forced roughly 700 textile and footwear firms to shut, eliminating around 20,000 formal jobs and many informal positions. The Milei administration’s deregulation, a favorable exchange rate and the growth of e-commerce have facilitated the trade, while authorities have set up a Smuggling and Counterfeiting Task Force and are reviewing customs procedures. Legislative proposals aim to make online marketplaces liable for customs duties on illicit imports.
Why it matters
The unchecked flow of contraband undermines Argentina's tax base, harms local industries and poses health risks from unsafe products.
In this story
