ASUNCIÓN, Paraguay - The Paraguayan Association of Merchants and Importers (Asimcopar) is calling for stricter regulations on the burgeoning import of used clothing, citing significant negative impacts on the sales of new apparel in established retail outlets. Eugenio Caje, the association's spokesperson, voiced concerns that the influx of "pre-loved" garments, often sold at drastically reduced prices in central and local markets, is creating an unsustainable competitive environment for businesses operating within the legal framework.
"We are seeing massive quantities of used clothing being sold at incredibly low prices, making it impossible for legitimate businesses to compete," Caje stated. He emphasized the disadvantage faced by supermarkets and other retailers who adhere to legal registration, pay taxes, and incur customs duties on imported new clothing or purchase from domestic manufacturers. According to Asimcopar, this situation represents a critical issue of unfair competition between the formal and informal sectors of the economy.
Caje revealed plans to engage with the Minister of Industry and Commerce to seek solutions, underscoring the substantial contributions of supermarkets to the national treasury through legal and official channels. He stressed the necessity of measures to ensure the viability of their businesses and the successful sale of high-quality, new clothing imported through proper channels.
The association's primary demand is for significantly tighter regulations governing the import of used clothing, aiming to establish a level playing field for all participants in the apparel market. Caje highlighted the persistent growth in used clothing imports over the past two years, describing it as a "chronic problem" for Paraguay. "Each year, more individuals and entities are involved in importing and distributing these types of garments, and we believe this trend is not the most beneficial for our economy," he asserted.
The rise of the used clothing market in Paraguay mirrors a global trend driven by increased consumer awareness of sustainable practices and the economic appeal of lower-priced goods. While this trend offers affordability, Asimcopar argues that the current scale of imports poses a direct threat to established businesses that operate with higher overhead costs due to taxes and compliance.
The situation presents several key challenges for Paraguay. Balancing fair competition with consumer access to affordable clothing, protecting the domestic apparel industry, and addressing potential concerns regarding the quality and hygiene of imported used garments are crucial considerations. The government will likely face the task of formulating policies that navigate these competing interests, potentially including enhanced import controls, quality standards for used clothing, and support for businesses seeking to transition within the evolving market.
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