FATE, a leading tire manufacturer in Argentina, has faced significant challenges due to an overwhelming influx of imported tires, which now make up 85% of the local market. Founded in 1940 and known for its technological advancements and international alliances, FATE has seen its production decline by 70% in recent years. The drop in local production is largely attributed to aggressive pricing strategies from foreign competitors, often underpinned by subsidies and incentives that Argentine manufacturers do not have access to, creating "scandalous asymmetries" in the market.

The situation has become increasingly concerning as sources indicate that Argentine manufacturers are at a severe disadvantage due to the absence of comparable support systems in place. As a result, domestic producers are burdened with export duties and additional costs that hinder their competitiveness. The article highlights the broader implications of this struggle, suggesting that without significant changes to trade policies and support mechanisms, the local tire industry may continue its decline, which could have long-term effects on employment and innovation in the sector.

In summary, the article explores the critical state of the Argentine tire industry, underscoring the need for reform in trade practices to bolster local production against the onslaught of imports. It raises important questions about the future of domestic manufacturing in the face of global competition bolstered by favorable conditions in other countries.