Arturo Calle has warned Colombian lawmakers that competition from foreign e-commerce platforms and the alleged counterfeiting of his brand are affecting employment at his clothing company. He reported nearly 2,000 jobs eliminated or under consideration for cuts.
The businessman made the remarks during a public hearing before the Third Commission of the House of Representatives, convened at the initiative of Antioquia representative Jhon Jairo Berrio to examine the impact of online platforms such as Temu and Shein on Colombia’s textile industry.
Calle presented the case of a handbag bearing his brand that he said was being sold through online platforms for 36,934 Colombian pesos (about US$11.55). He said his company had manufactured the product for decades, raising concerns about the use of established Colombian brands by sellers offering goods at substantially different prices.
His testimony also detailed employment reductions across the company’s production plants, offices and retail stores. The figures add a concrete dimension to concerns raised by Colombian manufacturers and merchants about how international online shopping is changing competition in the domestic market.
How many jobs has Arturo Calle reported cutting?
Calle said his company had eliminated 1,200 positions at its production plants in Pereira, Risaralda. He also reported 100 job cuts in its offices and said the company was considering eliminating another 100 positions as it continued looking for ways to reduce costs.
The company had also eliminated 600 jobs in its retail stores, according to his account. Together, the figures indicate that 1,900 positions have already been eliminated, with another 100 under consideration. Calle described the overall impact as approximately 2,000 jobs.
He linked the reductions to declining revenue as consumers shift their purchases. “If there are fewer buyers, there is less income, which means employees cannot be paid,” he said during the hearing.
The figures represent the businessman’s account of the company’s employment situation. They do not independently establish how much of the reduction resulted from foreign e-commerce platforms, counterfeiting or other business conditions.
Why are Colombian retailers concerned about Temu and Shein?
Calle’s warning reflects concerns that extend beyond his company. Merchants in San Victorino, a major commercial district in central Bogota, reported in March that their sales had fallen between 20% and 40% over the previous year, particularly for clothing and household goods.
The merchants attributed part of the decline to competition from platforms such as Temu and Shein. Their figures were based on reports from the sector, not a nationwide measurement of the effect of those companies on Colombian retail sales.
The broader market is moving online. Colombia recorded 684.6 million e-commerce transactions in 2025, a 19.9% increase from 2024, according to figures cited by El Espectador. The total includes the country’s wider e-commerce market and does not measure purchases from foreign platforms alone.
For domestic manufacturers, the concern involves both pricing and the protection of their products and brands. Companies that design, manufacture and distribute clothing in Colombia face their own production and operating costs, while consumers can compare products offered by sellers in different countries.
The presence of foreign platforms does not, by itself, establish that their products violate intellectual-property rights or that all sellers operate under the same conditions. Calle’s handbag example raises a specific allegation of brand impersonation that requires enforcement and evidence at the product and seller level.
What role do Colombia’s import rules play?
The dispute also concerns the customs and tax treatment of low-value shipments entering Colombia through postal and express-delivery services.
Under the rules described by the National Directorate of Taxes and Customs (DIAN), qualifying shipments with a free-on-board value of US$200 or less are exempt from customs duty. The VAT exemption is narrower: it applies when the goods come from a country covered by a free trade agreement that expressly provides for the exemption, and the shipment has no commercial purpose.
The threshold does not mean every online purchase below US$200 is automatically exempt from VAT. DIAN’s February 2026 guidance also said the temporary US$50 VAT threshold introduced under an emergency decree ceased to apply after the Constitutional Court suspended the decree in January. The agency directed customs authorities to return to the ordinary framework under Article 428(j) of the Tax Statute.
For businesses represented at the congressional hearing, the issue is whether differences in import treatment, production costs and enforcement create a competitive disadvantage for Colombian manufacturers and retailers. Any assessment of the effect on tax collection must account for the rules applicable to each shipment.
Will Congress introduce new measures?
The hearing brought manufacturers’ concerns before lawmakers, with participants seeking measures to address brand impersonation and the competitive conditions facing domestic businesses.
The next steps remain uncertain. As of Oct. 16, legislative proposals to sanction the sale of products that imitate Colombian brands were under consideration.
Any response will need to address distinct questions: how to identify and remove counterfeit listings, how to enforce intellectual-property protections across online marketplaces, and how to apply customs and tax rules to imported goods.
For Calle’s company, the immediate issue is the employment impact he described. For lawmakers, the challenge is to determine which measures can protect legitimate businesses and consumers while establishing clear, enforceable obligations for sellers operating through international platforms.