Loss of GSP status is affecting Uruguayan tanners too
14/04/2014
GSP allows exporters in developing countries to pay lower duties on their exports to the EU. At the start of 2014, all countries in the Mercosur economic union, with the exception of Paraguay, lost their GSP status.
Such is the effect in Uruguay that the tannery that automotive leather group Bader runs there faces an uncertain future, according to local media. The tannery, in Ciudad del Plata, employs 430 people and processes 40,000 hides per month. Its volume of business has increased in 2014, the company said, but the impact on margins of the loss of GSP status means Bader Uruguay is running to stand still, reports say.
Montevideo-based El País newspaper has quoted the senior management team at the tannery as saying Bader may find it difficult to maintain production in Uruguay.
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