Argentina has become a destination for “grocery tourism”

“Grocery tourism” is the term used to explain why Uruguayans cross the border Argentina With the aim of buying cheap food and fuel from his neighbor, who is affected by the economic crisis. However, this trend has seen businesses close to the border enter a crisis of its own.

The price discrepancy created an economic dilemma for cities on the borders that Argentina shares with Bolivia, Chile and Uruguay. This is because Bolivian, Chilean, and Uruguayan merchants are unable to compete with Argentine prices, often within a short distance.

Argentina Struggles With Over 100% Inflation. Its currency, the Argentine peso, has lost about 25% of its value against the dollar this year.

In Uruguay, for example, the annual inflation rate is 6%, and the local currency has strengthened significantly against the dollar, which increases the purchasing power of Uruguayans in Argentine markets.

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And Noelia Romero, a supermarket manager in Uruguay, said in an interview with the news agency Reuters Sales are going down quickly. According to her, her clients are increasingly making day trips to Argentina in search of lower prices.

“We have been hit hard in terms of groceries and cleaning supplies,” Noelia said. It operates in the city of Fray Bentos, which is separated by the Uruguay River from the Argentine city of Gualjuaicho, and is easily accessible by bridge.

Consequences of “supermarket tourism” in Argentina

The growth of “grocery tourism” in Argentina has led to high levels of unemployment and bankruptcies have been reported in border towns. And so, in May, the Uruguayan government took economic measures to help protect merchants in cities near Argentina. The stock package included some tax breaks and discounts on gasoline and medicine.

uruguay president, Louis Lacalle Poe, admitting that there is a problem with the very low prices in Argentina. He called on governors to take measures to implement a temporary import tax on foreign goods transported across borders.