Argentina prepares list of capital goods subject to higher import tariffs
The Argentine government has began a round of consultations with the manufacturing sector to determine which capital goods from non Mercosur members can be listed for a higher common external tariff as was recently agreed by the trade block.
The Ministry of Industry contacted the Argentine Chamber of Industry Machinery and Equipment Manufacturers requesting they supply a list of products they consider a priority to be incorporated into the one hundred tariff positions to which Argentina will apply a higher common external tariff, in accordance with the latest Mercosur summit.
Capital goods manufacturers must also identify those products which they consider must be added to the non automatic import licence system o should be protected against dumping practices.
However Minister of Industry Debora Giorgi said that the Argentine government initiative must be matched by a commitment from manufacturers to keep investing, respect price levels, substitute imports, create jobs, increase exports and adequately supply the domestic market.
According to a release from the ministry, manufacturers must comply with these commitments based on agreements to be signed with the Argentine government.
Last December Mercosur agreed that each member country could increase import tariffs in up to 100 tariff positions but below the maximum 35% allowed by the World Trade Organization.
At the moment it was argued that the decision was taken to ensure the region from the consequences on international trade from the global crisis turbulences.
“We’re working with all manufacturing sectors to boost the competitiveness of our industry; Argentina must have a sustainable industry of capital goods and world class inputs”, said Minister Giorgi.
“We are working to preserve the domestic market, production and Argentine jobs from the international economic crisis and the over-supply of cheap goods generated in those countries suffering the crisis”, added Giorgi.
The one hundred tariff positions that each country is entitled to present to modify the common external tariff will be reported to the Mercosur Foreign Trade Commission and unless there are ‘well founded’ objections from other country members, the measure becomes immediately effective.
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Another stupid minister of CFK. How can you 'boost the competitiveness of our industry' by imposing protectionist tarrifs?
All that will do is make the companies getting the money LESS competitive in the international market by padding the workforce, unions insisting on getting a slice for 'their' workers which will raise the costs of the goods, etc. etc.
Bet she doesn't put anything on padded shouldered dresses to keep her 'power look'.
Dumbo.
And HOW, may I ask, with all the fiscal drag in the monetary system caused by these import tariffs and the subsidization of the manufacturing industries (because that is what it really is) can the ordinary person afford these products?
And, why have you changed your position regarding the direct subsidies to the phone companies set up in Patagonia? You were correct that time, you are wrong this time. You cannot have it both ways.
4 Christy if you read the article minister Giorgi is referring to goods from outside Mercosur.If you are so interested in free trade please lobby Davidito and Brussels to allow free trade in all agricultural goods before you lecture CFK
Sometimes, I think you have genuine comments to make and understand the financial implications of what CFK is doing and how it will affect the economy as a whole and then you fail at the last hurdle.
Of course I understand it is goods from outside Mercosur BUT IT DOESN'T MATTER!
The extra costs will still be there! Perhaps Argentina makes everything that her people want but if that is the case why the imports?
If you have ever bothered to look at the UK's position it has consistently called for the CAP scheme to be abandoned: all it does is to protect the French peasant farmers with their smallholdings. No-one can overcome the Franco-German pact and that is at the root cause of many of the injustices within the EU.
You are right there will be an extra cost but the benefits of maintaining key industries and employment are paramount.The possible inefficencies are a worry without doubt but do you suggest the deindustrialization of the country because China has cheap labour on grand scale and an undervalued currency.Here I side with Argentina and Brasil who is adopting a similar policy.
There is a huge effort at regional development in South America and without doubt Argentina is causing some dificulty with Morenos antics.Nevertheless Brasil quietly recognizes the unique dificulty Argentina has in its row with the IMF and ratings agencies.When the agreement with the Paris club is made and pressure is taken off the balance of payments then Argentina will have to take Moreno off the case.
I hardly agree about French peasants to be fair.France has developed a society with far greater equality than anything in the Anglo saxon european countries and I have to respect its position in protecting its weaker people.
The definition of insanity is to doing the same thing over and over and expecting different results. I can't believe the whole country is insane though.
A very lucid reply up to the point of protecting its peasants. The rest of Europe is paying for its peasants smallholdings ( and that is what they are called in France) NOT France.
BTW I think 9 Yankeeboy may have hit the nail on the head.
CFK s current policy is only a short term move because she doesnt want to borrow any money.Why because she wants to deal with the Paris club and IMF on argentinas terms.
The industrialization of Argentina in 2011 is way ahead of anything in the past and growth figures whether you like it or not are excellent.
10 I accept France is clever at the expense of others but thats hardly their fault
Argentina has serious problems and until someone with a little brains recognizes that you are on a road to a crash sometime very soon. This drought my be the straw that break their back. Soy is waaay down compared to last year and you'll have a much smaller crop. Arg was already U$ 12BILLION short in funding BEFORE the drought. It's just a matter of time now.
It's all very simplistic this old theory of free trade,but it is not the answer,just as protectionism is of limited use,but to dismiss it as a dogma,is stupid unless you are in a strong position.
Buy British was a slogan in the past,and was of limited value,but it had a value.Of course you can borrow to get the benefit of scale to compete,but that is why the “developed world” is were we are at.And the USA &Uk are there as well and want SA to help get them out.
Come into the real world not the world of confidence tricksters.You're exposed
Do you remember the Wall street crash and how your country addressed that period 18#
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