Argentine shoe, clothing manufacturers lobby govt over import policies

President Mauricio Macri's promises to end trade restrictions and open Argentine commerce to the world have fallen flat for many importers, who are going to court to free up goods trapped in the country's byzantine customs system.

The delays have led companies to file an increasing number of injunctions asking judges to require the government to release their imports, according to interviews with three law firms specializing in customs issues, sources at two importing companies and a source at Argentina's Production Ministry.

They said it was difficult to estimate the total number of cases because they are usually settled out of court.

In Argentina, importers buy goods and then must ask the government for permission to bring them into the country. Under Macri, the number of overall goods that need import licenses has nearly tripled to 1,628 up from 618 under the previous government, according to official government data.

The increased requirements were meant to protect jobs during a recession, a source at the government's Production Ministry said.

"This is protectionism, plain and simple," Ruben Garcia, president of the Argentine Chamber of Importers, said in an interview earlier this month. "Importers are looking for judicial rulings because there are impediments that should not exist."

At the same time, Macri is fielding criticism from manufacturers who fear they will not be able to compete with a rush of imported goods as Macri promises to liberalize trade.

This includes footwear, clothing and toy companies who are lobbying to block imports to prevent competition.

Imports of shoes rose to 27.3 million pairs in 2016 from 22.6 million the prior year while imported textiles were 61 percent of the local market last year from 50 percent in 2015.

"Our level of activity fell by 25 percent, more than the decline in consumption, which was 15 percent," said Jorge Sorabilla, president of the Pro-tejer Foundation, a lobby group for textile and clothing companies. "That additional 10 percent is due to imports."

The dual complaints highlight the government's difficult balancing act in trying to open Argentina's economy without prompting layoffs and popular discontent ahead of congressional elections later this year.

Reuters with Benjamin Fitzgerald