Argentina slashes export taxes on cosmetics to boost global competitiveness

Argentina is removing export taxes on 4,411 goods, including cosmetics and personal care products. The country aims to strengthen its economy and encourage international exports and trade. 

According to Luis Caputo, Argentina’s minister of economy, the removed taxes will benefit 3,580 companies and approximately 40% of the country’s exporters. The export taxes stood at 3–4.5%. 

The country aims to improve its global competitiveness, especially for value-added goods. The cut covers 88% of the country’s industrial products. 

Last year, the exports of these products accumulated US$3.8 billion in value, including products with high added value like cosmetics, pumps, plastics, and metals.

Caputo stresses that having export duties on goods lessens the competitiveness of Argentinian products sold abroad and discourages exports. 

Small and medium-sized companies mainly pushed for the removal of the export tax. 

South American beauty

Euromonitor International reported that multinational companies left Argentina’s beauty and personal care landscape in 2023 due to import barriers, restrictions on money transfers, price controls, inflation, and a weak economic climate. 

Chemical supplier Evonik recently acquired Argentinian company Novachem, which produces sustainable and eco-friendly cosmetics. Evonik said Latin America is “one of the most biologically diverse regions in the world,” which will help bring innovative and sustainable solutions in the personal care market.

Argentina’s neighbouring country, Brazil, is estimated to be the fourth-largest beauty market globally. In 2022, Argentina imported the most personal care products from Brazil globally, amounting to 18.7%, followed by Mexico with 11.8%, Colombia with 10.7%, Chile with 10.1%, and Paraguay with 6.6%.

In 2022, Colgate-Palmolive reported that the Latin America region accounted for 24% of the company’s sales. Argentina, Mexico, Brazil, and Colombia led organic sales growth.