The Hidden Cost of Illegal Trade in Argentina

Smuggling has evolved from a marginal issue into one of Argentina's most pressing economic challenges. According to a report by consulting firm MAP, illegal trade in 2025 generated an estimated fiscal loss of USD 2.3 billion, equivalent to 0.3% of Argentina's Gross Domestic Product (GDP).

The scale of the problem is alarming: the revenue the State failed to collect due to unpaid tariffs, VAT, and internal taxes would be enough to build 3,800 schools, 80 high-complexity hospitals, or 1,900 kilometers of national highways.

The study also revealed a loss of 10,000 direct jobs in productive sectors and placed Argentina in 120th position out of 158 countries in the sectoral illicit trade index prepared by TRACIT (Transnational Alliance to Combat Illicit Trade), an international organization that monitors global illegal commerce.

Manufacturers vs. Marketplaces: Two Conflicting Visions

The growth of smuggling has reignited tensions between manufacturers and marketplaces (online selling platforms like Mercado Libre, Latin America's largest e-commerce platform, often called "the Amazon of Latin America"). While companies demand stricter verification of sellers operating on digital platforms, the e-commerce sector maintains that oversight is the responsibility of public agencies.

The Manufacturers' Position

Companies are demanding that platforms implement stricter controls before allowing product listings. Proposed measures include:

• Require documentation proving legal entry of goods into the country
• Request specific registrations such as Rematel (the import registry) or Enacom homologation (communications regulatory agency approval) for mobile phones
• Cross-reference VAT credits and debits using the seller's CUIT (Argentina's tax identification number) to detect merchandise without import backing

Afarte stated that "legitimate companies must absorb additional compliance and control costs, such as traceability systems and expert assessments, to differentiate themselves from smuggled products that, lacking quality controls, not only evade taxes but also pose risks to consumer safety".

The Marketplaces' Response

The Argentine Chamber of Electronic Commerce (CACE) rejects the association of e-commerce as the source of the problem. In statements to Infobae, they emphasized that more than 90% of transactions are conducted through digital payment methods, which allows identification of the parties involved and facilitates access to relevant information by competent authorities.

The chamber highlighted their promotion of "an open, innovative ecosystem with the least possible bureaucratic obstacles" and that the challenge lies in finding a balance between promoting innovation and ensuring transparent competitive conditions.

A Bill in Congress

The debate has also reached the Argentine National Congress. Deputies Guillermo Michel and Kelly Olmos introduced a bill proposing:

• Make online sales platforms jointly liable for certain operations conducted by their users
• Verify sellers' identity and tax status
• Require documentation proving legal introduction of imported products into the country
• Establish fines of up to five times the value of the merchandise involved

The debate on how to combat smuggling in the digital age is just beginning, and finding the balance between state control, platform responsibility, and consumer protection will be key for the future of commerce in Argentina.