If there is an industrial sector that has had a hard time since the beginning of the epidemic, it is undoubtedly the shoe sector. The collapse of fashion consumption as a result of the suspension of all social activities has brutally impacted sales, which was then added to by the rise in energy costs and raw materials, and if that wasn’t enough, the threat of tariffs. It resulted in more than a notable cancellation of orders from the United States. However, the situation began to change, first with a gradual recovery in business activity with the lifting of anticovid restrictions, and then with the re-activation of exports to the USA as it was known. expenses are eliminated. In fact, the first non-community target, sales, increased by 25% this yearIt is in a dynamic that is also related to the difficulties of the still ongoing maritime traffic between the Asian and North American country.
It’s not about the shoes, but the truth is involved in a dispute due to the so-called Google TaxIn this context, Washington proposed applying a 25% tariff to products from Spain in this sector. This fee would be added to the 10% currently in effect, which would increase the percentage to 35%. The results were immediate, with up to 30% of orders canceled last spring. even threatened the continuity of countless companiesespecially from the Elda region, which has its main market in the North American country.
After multiple contacts and pressure from the industry itself, an agreement was finally reached last October that Spain, France, Italy, Austria and the United Kingdom could continue to apply the rate applied to large multinational tech companies. By 2023, it will be replaced by a global minimum corporate tax rate adopted within the OECD. This deal caused the United States to suspend the increase in tariffs to relieve shoe companies.
And what were the results? Marián Cano, president of the Valencian Footwear Entrepreneurs Association (Avecal), points out that in the first quarter of this year, exports from the Community to the North American country, most of which correspond to the state of Alicante, have already started. increased by 25% compared to the same period of the previous year. made it possible to reach 34.3 million euros. “The impressions – point out – are positive and we hope to be confirmed in the coming months”.
Another contributing factor is that communication by sea from Asia, a major shoe manufacturing hub, continues to suffer due to covid, which has diverted the US to other suppliers. In any case, Cano underlines the importance of this reactivation, “We are talking about our main goal outside the European Unionbehind only Italy, France and Germany”.
Manuel Román, president of the Spanish Shoe Components Association (AEC), stresses that “fortunately, the expected fiasco has not happened” and it is possible to resume commercial activity. Manuel Ruiz, manager of Manufacturas Newman from Elche, made similar statements, saying that “since the agreement was reached, the problem is over.” Meanwhile, Pikolinos from Elche emphasized that the crisis did not have a significant impact on this company since they have a logistics platform on the territory of North America. sharp increase in consumption in this country.
Source: Informacion
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