{
  "id": 1193190,
  "title": "From clothing to yerba mate and cell phones: smuggled goods flood Argentina",
  "url": "https://urgent.news/2026/08/16/from-clothing-to-yerba-mate-and-cell-phones-smuggled-goods-flood",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-16T04:00:00.000Z",
  "source": {
    "name": "El Pais English",
    "slug": "el-pais-english",
    "url": "https://english.elpais.com/economy-and-business/2026-08-16/from-clothing-to-yerba-mate-and-cell-phones-smuggled-goods-flood-argentina.html"
  },
  "original_language": "en",
  "account": "Smuggled goods have been on the rise in Argentina, affecting various industries from clothing to yerba mate and cell phones. This surge in illegal trade has become a significant problem, costing the country $2.3 billion in tax revenue in 2025, or 0.3% of its GDP, according to a survey by the business consultancy MAP.\n\nThe phenomenon has grown alongside the opening and deregulation of Argentina's economy, which eliminated mechanisms used to combat smuggling. The new administration under Javier Milei has contributed to this issue by lifting import barriers, relaxing controls, and eliminating the exchange rate gap between official and black market dollars. Additionally, the expansion of e-commerce and online sales platforms has allowed informal actors to enter the market, further exacerbating the situation.\n\nMerchandise enters Argentina illegally through border areas with neighboring countries, as well as via legal smuggling with under-invoiced merchandise. The textile and apparel sector, for example, is flooded with stock due to increased smuggling and imports. This has led to the closure of 700 companies in the sector, resulting in the loss of 20,000 formal jobs and potentially 10,000 informal jobs.\n\nThe impact of smuggling extends to everyday items like thermoses for preparing mate, a traditional Argentine herbal tea. Approximately 50% of thermoses in circulation entered the country through smuggling, many of which contain toxic metals prohibited by authorities. The government's removal of the tax stamp, which previously helped identify legally imported products, has made it difficult for consumers to identify smuggled items.\n\nCell phones are another example of smuggled goods, with one in three new mobile phones activated in Argentina entering the country through illegal channels. These devices are then distributed throughout the country, with counterfeit accessories even being sold in upscale shopping malls. The smuggling of mobile phones has reached alarming levels, with the figure exceeding 30%, compared to the usual 5% to 7% smuggling rate.\n\nThe consequences of smuggling are not limited to economic losses but also pose health and environmental risks. The removal of controls on social traceability, carbon footprints, phytosanitary issues, and capital flows has allowed smuggled products to enter the market without proper oversight.",
  "summary": "A favorable economic climate and relaxed regulations have led to a surge in illegal merchandise. Business owners are warning consumers about the risks",
  "key_points": [
    "Smuggling costs Argentina $2.3 billion annually, impacting $2.3B tax revenue in 2025",
    "New administration lifted import barriers, relaxing controls, eliminating exchange rate gap",
    "50% of thermoses contain toxic metals, highlighting health risks from smuggled goods"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}