The Argentine Textile Industries Federation (FITA) reported that textile production fell 23.9% year-over-year in January 2026, the sharpest drop since 2016. Factories operated at just 24% of installed capacity, with warnings over low-priced imports impacting jobs and competition.
The FITA disclosed in its sector report that the textile industrial production index (IPI) for January 2026 showed a 23.9% year-over-year decline, eight times the 3.2% drop in general industry. Installed capacity utilization hit a low of 24%, down 11.4 percentage points from the prior month and 10.2 points interannually, against 53.6% for total industry.
Fundación Protejer noted that real sales of clothing, footwear, and home textiles in supermarkets rose 9.6% year-over-year and 25.5% versus 2023, while in shopping malls they increased 4.3% from January 2025. However, many sales occurred with negative profitability and a shift toward imported goods.
In February 2026, imports of finished products reached 12,800 tons for US$32 million, with over 70% at historically low prices—such as cotton t-shirts under US$0.01 or jeans below US$1—which FITA links to under-invoicing and unfair competition. Formal employment in textiles, confection, leather, and footwear stood at 100,000 jobs in December 2025, reflecting a 12,000-job annual loss and over 20,000 since early 2024.
Celina Pena, FITA's general manager, warned: “In a context of declining activity and employment, the recurrent pattern of strikingly low-priced imports demands actions to avoid distortions in competitive conditions.” The entity calls for using existing regulatory tools to safeguard the national industry.
