The economic opening policies of President Javier Milei have increased illegal imports in Argentina. Products such as whisky and mobile phones have become the focus of smuggling, affecting local companies.
Illegal imports of products in Argentina are on the rise, according to expansion.com. President Javier Milei has boosted the strength of the peso and opened up the economy, which has facilitated the smuggling of goods.
Smugglers are introducing vehicles loaded with products such as Corona and Sol beers into the province of Formosa, near the border with Paraguay. In another case, a truck with 17,000 cigarettes was detected in the province of Salta, close to Bolivia. Business chambers estimate that up to 40% of the beer and 30% of the tyres sold in the country are smuggled.
The proportion of mobile phones imported illegally has increased from 7% to more than a third of the market since Milei took office in 2023. A director of an anonymous importing company stated: "Never in my life have I seen such a quantity of this merchandise."
Smuggling has been favoured by the government's campaign to reduce bureaucracy in the entry of goods, according to importers and manufacturers. The unification of the exchange rate, which was previously weaker on the black market, has incentivised smuggling.
President Milei has downplayed concerns about the situation of local manufacturers, arguing that consumer savings can generate new jobs in other sectors. However, some importers warn that the removal of certain controls has facilitated smuggling, creating new opportunities for corruption.
The consultancy MAP estimates that smuggling of seven categories of products could result in a loss of 2.3 billion dollars in public revenue by 2025, an additional challenge for the government as it seeks to balance the country's budget.
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