Arturo Calle Warns Congress of Job Losses Amid Counterfeit Goods and Online Competition

Arturo Calle, an entrepreneur and former member of Colombia's "Committee of Wise Minds," warned Colombian lawmakers about the impact of foreign e-commerce platforms and alleged counterfeiting on his clothing company. During a public hearing before the Third Commission of the House of Representatives, Calle reported that his company had eliminated 1,200 positions at its production plants in Pereira, Risaralda, 100 jobs in its offices and is considering eliminating another 100 positions as it seeks to reduce costs.

Additionally, the company had eliminated 600 retail store jobs. By these accounts, approximately 2,000 jobs have been eliminated, with around 100 more under consideration. Calle attributed the reductions to reduced revenue as consumers shift their purchases. He noted that declining consumer demand leads to lower income, which in turn affects employee paychecks.

The warning reflects concerns beyond his own company, as merchants in San Victorino, a central Bogota commercial district, reported a 20% to 40% decline in sales over the past year, particularly for clothing and household goods. They attributed part of the decline to competition from platforms such as Temu and Shein, which offer lower-priced goods in comparison to established Colombian brands.

The broader Colombian market is increasingly moving online, with 684.6 million e-commerce transactions recorded in 2025, a 19.9% increase from 2024. This growth extends to the country's broader e-commerce market, not just purchases from foreign platforms alone. For domestic manufacturers, the concern lies in both pricing and protecting their products and brands.

While foreign platforms do not inherently violate intellectual-property rights, the presence of these platforms does create competitive challenges for Colombian businesses. Import rules, specifically those concerning low-value shipments entering Colombia through postal and express-delivery services, also contribute to the issue.

Under Colombian taxation rules, shipments valued at US$200 or less are exempt from customs duties and VAT, unless they originate from a country with which Colombia does not have a free trade agreement. The hearing drew attention to the need for legislative measures to address brand impersonation and the competitive conditions faced by domestic businesses, though the specific actions to be taken by Congress remain unclear at present.