In this commentary, economist Juan Carlos Hallak analyzes the state of Argentina's textile sector under the policies of President Javier Milei. He notes that, while trade tariffs on finished clothing have been reduced from 35% to 20%, there still exists a significant level of protection for the industry, especially when compared to other countries like Chile, which has a 6% tariff. Hallak emphasizes that this gradual shift towards a more open economy is necessary for the textile sector and suggests that more support is needed for workers transitioning from old jobs to new roles as industry conditions change.

Hallak also critiques the financial support granted by the government to certain sectors, such as the one in Tierra del Fuego, claiming that it amounts to wasted funds. He asserts the importance of gradually opening the economy rather than implementing drastic changes that could lead to severe disruptions in employment. He argues that while reducing the fiscal deficit is crucial, the approach taken must consider the long-term adjustments needed by workers in the affected sectors, highlighting the 'costs of adjustment' that must accompany economic changes.

The discourse reflects ongoing concerns about the balance between necessary economic reform and protecting jobs in traditional sectors. Hallak's insights stress the need for thoughtful policy-making that prioritizes both competitiveness in the global market and the welfare of the workforce, shedding light on the complex dynamics facing Argentina's textile industry.