Monday, March 12th 2012 - 20:49 UTC

Argentina expected to announce more protectionist measures this week

Argentina plans to intensify its policy of protecting the trade surplus and impeding the outflow of hard currency and this week is expected to add another one hundred tariff positions which will be submitted to an increase in import levies.

Industry minister Debora Giorgi, a crusader for Argentine manufacturing

A special team has already listed the one hundred products that will suffer a major tariff protection, and previous consultation with President Cristina Fernandez the list must be presented to the Mercosur Foreign Trade Committee.

The Argentine team is made up of Minister of Industry and Production Debora Giorgi; Secretary of Foreign Trade Beatriz Paglieri and the Economic Policies Secretary Axel Kicillof.

According to Argentine sources consumer, intermediate and capital goods are included in the list, which was elaborated in coordination with the respective commerce chambers.

Regarding capital goods the list includes those which are manufactured in Argentina or are exposed to ‘disloyal’ competition or have been re-directed to this part of the world because of the Euro crisis in the EU.

Argentine government sources said that for each good, a study on the level of imports during the last twelve months has been elaborated as well as how the possible increase in tariffs will impact for the overall production chain. The range of industries covers from machinery and equipment, metal, electronics, electro-mechanic, telecommunications, computers, plastic, glass and paper and pulp.

Last December Mercosur members agreed to a system that enables individual members to increase import duties on 100 tariff positions, above the group’s common external tariff but below the maximum allowed by WTO, which is 35%.

In exchange for this protection Argentine manufacturers will sign individual contracts with the government, by which they are committed to greater investment, price stabilization, substitution of imports, increase in jobs and ample supply to the domestic market in quality and quantity.

The current Argentine protectionist policy has been severely criticized by Mercosur members, countries in the region (Chile, Peru and Mexico) as well as the European Union and the US.
 

53 comments Feed

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1 GreekYoghurt (#) Mar 12th, 2012 - 09:03 pm Report abuse
... and the EU is going to sign a treaty with this? Hmm, I hope Spain isn't involved in the decision making, they'd sign any old nonsense if Argentina is there.
2 The Cestrian (#) Mar 12th, 2012 - 09:12 pm Report abuse
We are told that protection based policies dont work and this to me smacks of a pretty desperate RG policy to prop up its crisis economy.

how do they get away with doing this? At what point do people start to sanction them and we have tit for tat reprisals?

Are they going to be allowed to get away with this and for how long?
3 GreekYoghurt (#) Mar 12th, 2012 - 09:25 pm Report abuse
free market distortions... hidden information.. uneven playing field... nationalisations... no US$...dipping into central bank reserves... massive inflation....

hmm... GTFO!!
4 The Cestrian (#) Mar 12th, 2012 - 09:33 pm Report abuse
www.economist.com/node/21549939

Good article. So much for South American solidarity and the free market!
5 yankeeboy (#) Mar 12th, 2012 - 09:48 pm Report abuse
I wonder how long it will take for retaliation to kick in? I love watching Arg back peddle...
6 Teaboy2 (#) Mar 12th, 2012 - 09:58 pm Report abuse
They'll all be facepalming themselves within 12 months when their bank accounts are wiped clean over night - again. Jesus they so stupid they refuse to acknowledge that their economy is about to implode in on itself and this time it will be far worse then just a default on debts as whole businesses and industries will be wiped out over night.
7 Furry-Fat-Feck (#) Mar 12th, 2012 - 10:33 pm Report abuse
They are digging a hole for themselves, the best bet is to let them carry on digging.
8 briton (#) Mar 12th, 2012 - 11:03 pm Report abuse
if you are going to travel down the protectionist road,
then why bother with all the treaties,

all you are doing is signing something you will iether ignore or just forget, years later .
9 GreekYoghurt (#) Mar 12th, 2012 - 11:10 pm Report abuse
@8 because the Argies are very good at signing things that they subsequently ignore (UN Charter, 1850 Treaty of Friendship, et cetera).
10 briton (#) Mar 12th, 2012 - 11:41 pm Report abuse
yes, something else they forget .lol.
11 Stefan (#) Mar 13th, 2012 - 02:32 am Report abuse
Anyone think the picture looks like KFC with cancer?
12 Frank (#) Mar 13th, 2012 - 02:34 am Report abuse
Maybe she should look at QC in the microwave oven industry.... a lot of RG women look as if they own one with a faulty door seal......
13 ManRod (#) Mar 13th, 2012 - 08:13 am Report abuse
this is going to be fun...

and Argentina wanted Chile to join “Free Trade Zone Mercosur”?
I feel pity for the small ones, Paraguay and Uruguay, who have been severely tricked into this “Union” with false promises.
14 The Cestrian (#) Mar 13th, 2012 - 09:02 am Report abuse
@8

Yet more agreements that Argentina doesn't abide by.
15 GreekYoghurt (#) Mar 13th, 2012 - 09:43 am Report abuse
I know a song about this...

First Verse
------------
In argentina we want to win,
we sign up things,
then put them in the bin,
with free trade deals,
and friendship treaties,
we know we'll ignore them,
and have more sweeties.

Chorus
--------
Sign that,
sign this,
ignore that,
ignore this,
steal their land,
kick them out,
Argentines just take the pyss.
16 toooldtodieyoung (#) Mar 13th, 2012 - 10:54 am Report abuse
11 Stefan

She definately neeeds to eat more pies..............
17 Boovis (#) Mar 13th, 2012 - 11:09 am Report abuse
Is the country in such bad economic shape that even the industry minister can't afford Bifocals? Someone should tell her that no-one believes a person is more intelligent purely because they look at you over the top of their glasses, it just looks either dim or condescending.
18 GreekYoghurt (#) Mar 13th, 2012 - 11:15 am Report abuse
Is food that rare in Argentina? She should hang out with Fatty-tub-tub Nestor 'Hitler Youth' Junior more, he's furking massive.
19 yankeeboy (#) Mar 13th, 2012 - 02:55 pm Report abuse
17. They have held prescription eye glass lenses in customs so maybe she can find the right eye glasses any longer.

What always grosses me out about Arg women is they are basically anorexic so their hair gets really dull and stringy and they get lots of hair on their arms. It's really gross especially on the older women.
20 toooldtodieyoung (#) Mar 13th, 2012 - 03:12 pm Report abuse
Can anyone tell me, off the top of their heads, what Argentina makes? I mean apart from “A lot of noise”?

what does export apart from “Hot air”? I mean, I would love to know...
21 ElaineB (#) Mar 13th, 2012 - 03:14 pm Report abuse
@20. It is strange that the women in Buenos Aires think men are attracted to them if they have bodies resembling 11 year old boys, fake tits and a trout pout. Eating disorders are as common at the twice weekly visit to the psychoanalyst.
One of my Argentine friends (very normal) described this kind of woman as 'so egocentric she has to pay someone to listen to her talk about herself for hours'.
But it is a type. And particular to BsAs.
22 xbarilox (#) Mar 13th, 2012 - 03:50 pm Report abuse
This is typical of Fascism.

@ 21 that's true.
23 ChrisR (#) Mar 13th, 2012 - 04:02 pm Report abuse
21 ElaineB

Yes, but we are seeing Uruguayo women with the same problem.

You see them running down the Rambla and from the back they have the figure of a 20 year old: and then they turn around.

They are all the same, at least 50+, a look of utter desperation on their face and more lines on their prune coloured sun-burnt faces than Crewe Station.

What their husbands think of all this is beyond me. As my wife says 'do you remember the old joke about the paper bag'!
24 yankeeboy (#) Mar 13th, 2012 - 04:15 pm Report abuse
20. The only meaningful exports are Cars to Brazil and Soy to India/China/EU other than that the rest is irrelevant.

21. The first time I was in Argentina I was at a restaurant and my friend told me at the next table there was a famous model and her entourage. My reply (in english) was a model (?) maybe a long long time ago, not knowing their whole table heard me and understood. I was really embarrassed!
25 GreekYoghurt (#) Mar 13th, 2012 - 09:08 pm Report abuse
@24 Should have said it louder.

I'm just going to come out and say it. I just don't find Argentinian women attractive at all. There you are, I've said it.
26 The Falklands are British (#) Mar 13th, 2012 - 09:12 pm Report abuse
21 LOL!

That's so true Elaine B. I see them when I'm over there and they look rediculous and they are so self-centred. My favourite is watching them on planes. Flying and being at airports seems to bring out the worst in them.
27 tobias (#) Mar 13th, 2012 - 11:37 pm Report abuse
So the question is...

You all loathe everything about Argentina, the government, the culture, the people, the women, the children, the climate, the economy, the tourism, the flag, the politics, the food.

WHY DO YOU ALL DAY AFTER DAY KEEP TALKING ABOUT ARGENTINA? Rather psychotic and masochistic to keep getting high-blood pressure and yammering about what you abominate, isn't?

LOL... You all are no different at all from the “malvinistas”. And what both of you two groupies have in common is called:

fimgs.net/images/perfume/nd.248.jpg
28 xbarilox (#) Mar 14th, 2012 - 12:28 am Report abuse
@ 27 you are a Malvinista, why are you trying to hide it? Nice try, but it didn't work!
29 tobias (#) Mar 14th, 2012 - 12:30 am Report abuse
And your opinion counts because...

:)
30 GreekYoghurt (#) Mar 14th, 2012 - 12:33 am Report abuse
@27 This should answer your question (youtu.be/rxdDIwVWrxI)
31 pepegalleta (#) Mar 14th, 2012 - 02:59 am Report abuse
for everybody here, what is wrong to try to protect the Argentina industry?, what is wrong?
32 Teaboy2 (#) Mar 14th, 2012 - 03:35 am Report abuse
@31 - Its destroying your economy, thats whats wrong. It is also leading argentina into hostile trade wars with its neighbours who are now threatening to impose restrictions on imports from argentina, which will increase the negative impact on argentinas economy, speed up inflation by sending prices souring. Basically Argentina is free falling into a bottomless economic pit that they won't be able to climb out of. The provinces will start breaking away from the republic and argentina will simply cease to exist, is the worse case scenario that is a very real possability.

Many of us here have be warning the argentine posters on here for well over a year but they just refuse to accept that it will happen, despite what happened in 2001, only this time it will be 1,000 times worse than in 2001 as its not going to be about just defaulting on debts but about a complete economic collapse, which argentina does not have the reserves or infastucture to recover from, it will be far worse than what you saw happen in zimbabwe.
33 GreekYoghurt (#) Mar 14th, 2012 - 08:40 am Report abuse
@31 just look at the North Korean economy and then tell yourself what is wrong with protectionism.

Protecting the argentinian economy is about having fiscal control over growth in order to let the market do the work. Sadly when you have someone refusing to work with the IMF, FATF and dipping into the central bank for 'spending money' your economy is untrustworthy. The trustworthiness of the argentinian economy is of great concern to most observers. Nothing wrong with sorting that out.
34 toooldtodieyoung (#) Mar 14th, 2012 - 01:19 pm Report abuse
33 GreekYoghurt

Yes the similarties are startling. North Korea, a backward country, ruled by a despot, no free speech, economy in the toilet, national press strangled by the government and everyone in power re-writing history as and when they see fit.

For “North Korea” read “Argentina-land”.................or “zimbabwe” ( thanks for that teaboy2 )

anyone else see a pattern forming here?
35 tobias (#) Mar 14th, 2012 - 01:53 pm Report abuse
@32

You have a decent grasp of economics but a benighted understanding of Argentina. Stick to the former.

(hint: no Argentine province or region has ever openly considered Resiling of Union since 1853... unless you are going to state that Argentina has been through no economic crisis, wars, and internal strife since then).

(2nd hint: in 2001 the debt to GDP was 139%, the currency was in a straight-jacket, and commodity prices were at historic lows. Today, debt to GDP is 50%, the currency can free float, and commodities are solid now and in the medium term. The chances of a 2001 crisis are effectively 0.)

Again, stick to economics, forget about talking about a country of which you know as much about as humanity as a whole knows about after-death.
36 pepegalleta (#) Mar 14th, 2012 - 02:56 pm Report abuse
32 well if you read american history proteccionist was used several times with goid results, actually in a simillar crisis, in the 30 with the new deal ,
Argentina has a small group of factories and I don t think some proteccionismo will affect in the longe time Argentina, can be at the biginin but not at long round.
37 tobias (#) Mar 14th, 2012 - 04:16 pm Report abuse
You can't protect that which is never competitive. Argentina is trying to protect industries that have no room in Argentina (textiles and toys), because there's just to many countries out there that can make them much cheaper.

The only way they would do well if they offered some high-end or special product (like for example, our advertising service industry, our leather products, and increasingly our wines are offering), which then means they don't need protections because people want them regardless.

And too many factories just want protectionism for convenience, not for protection from dumping. Then they do get protected and do nothing to become more productive and competitive (like firing unnecesary or bad workers, which they can't really do in this country).
38 pepegalleta (#) Mar 14th, 2012 - 06:50 pm Report abuse
37 I agree with you in some points, but Argentina industry has a lot of desventajas coparing with Asia and other continents. Labor laws in Argentina are very taft, if you read about it you will see what I am talking sbout.
This desventage make Argentina industry not competitive.
Actually here in US the government is trating to stop China industry an imports. China lies to much, there are not human rights, In Europa several countys doesn t alaw imports from China in a direct way, products need to pass trought Europeans corporations.
Argentina labor sindicates are cery strong, Peron made this guys very powerfull, big mistake, a employer in Argentina has at least 50 to 60% social charges on top of the salary, that makes Argentina impossible to hire people to work.
All the south America countrys that blames Argentina protectionist rules are talking becouse is free, what Uruguay did to help Argentinian economy?, the answer is nothing, we invested a lot if money in Uruguay actually we builded entire citys like Punta del este, we open the country to receive Uruguayans to live in Argentina, we receive people from Bolivia, Paraguay, Brasil, Chile, Peru etc, why all this people come to Argentina?, may be becouse there are more jobs in Argentina than in any other country in south America.
I think protctionist is a good idea, After all Argentina is the best market after Brasil.
why Any of the countrys in S America do something to keep the people?
if you take Chile as an example where there only are rich people and polr people, no midle class to consum products, but under the world eyes Chile is an example, actually is a bad example, people from Chile come to Argentina to get free education, healtcRe and jobs.
39 rebeldenacion (#) Mar 15th, 2012 - 12:57 am Report abuse
Mad psychotic bitch is the best term for Cristina Fernández de Kirchner the current disaster president of Argentina!
Others around Cristina Kirchner that are also crooks are her vice-president, Amado Boudou, he is actually an owner of the company that prints money for the government in Argentina, a major conflict of interest, but he denies it, he owns the company in the names of other friends and associates. He is being investigated and surely will end up in jail where he belongs. Cristinas 2 VERY UGLY children, Maximo and Florencia Kirchner, are also very corrupt. Maximo owns all kinds of hotels and properties adn Florencia is a film student in New York and lives in a luxury Park Avenue apartment and is known for major cocaine use. Some of us who know her in New York remember how she always used to tell us how her parents have a bank account drawn on the Nation of Argentina and for her family money is no object. These 2 corrupt children of Cristina Kirchner are self proclaimed “militants”, they belong to 2 internal terrorist groups which Cristina Kirchner finances, “La Cámpora” and “Quebracho”. “La Cámpora” goes around to the poor shantytowns around the cities in Argentina and gives the poor people a bag of groceries, a sausage sandwich called “choripan” and $20 pesos to buy their votes. These people have no choice but to accept this as they are extremely poor and have no other hope. “Quebracho” is a terrorist group which Cristina Kirchner pays to protect her, they disguise their faces and go around shaking down businesses to get money and give back to the president. They are also responsible for drug dealing, robberies and murders.
www.youtube.com/watch?v=zTBAjfgHLyk&feature=relmfu
www.youtube.com/watch?v=azwWSN2pukk
www.youtube.com/watch?v=iSvQw00SV-c
www.ripoffreport.com/government-worker/argentina-tourists-m/argentina-tourists-murdered-l-33f51.htm
www.ripoffreport.com/federal-government/cristina-kirchner/cristina-kirchner-cristina-kir-dc9b0.htm
40 Tim (#) Mar 15th, 2012 - 01:21 am Report abuse
39 rebeldenacion (#) You seem pretty clued up!!! I have been hearing rumours that Chavez is shipping AK47s down to La Matanza; you heard any of this???
41 British_Kirchnerist (#) Mar 15th, 2012 - 10:57 am Report abuse
#11 She doesn't look like Cristina and she certainly doesn't look cancerous. Not as stunning as my Queen but if my Queen doesn't run for a 3rd term she might be a good stand in for a while (and there are others, this guy Kicillof sounds quite cool from the other thread)

#11, #21-26 Mysogynistic racist bastards

#27 & #31 Exactly
42 Teaboy2 (#) Mar 15th, 2012 - 01:55 pm Report abuse
@41 - If you see CFK as your queen then do us all a favour and piss off back to argentina instead of living of the british welfare with free housing and benefits as a guess of HM Elizabeth II at the british taxpayers expense.
43 St.John (#) Mar 15th, 2012 - 09:45 pm Report abuse
@31 pepegalleta asks “what is wrong to try to protect the Argentina industry?, what is wrong?”

Well, for one, the countries to which Argentina is exporting can do the same - then where will Argentina be, with failing exports to provide the necessary foreign currency?

Protectionism only works if no one can retaliate.
44 Teaboy2 (#) Mar 16th, 2012 - 01:08 am Report abuse
@35 - only those who can not see what is fast approaching and looming over argentina are benighted, accusing me, the messenger as being benighted is nothing but evidences of your own uninformed mind. In 12 months we will see whos right. Though the odds are clearly looking favourable for me.

@36 - the great depression was a completely different time, back then most countries were more reliant on their own internal economies and internal industries then they were on global trade and global economy, which they are now totally reliant on.
45 Frank (#) Mar 16th, 2012 - 03:31 am Report abuse
@44 'back then most countries were more reliant on their own internal economies and internal industries '
Two notable exceptions being Australia and Argentina.... Australia got its act together.... Argentina never will.....
46 pepegalleta (#) Mar 16th, 2012 - 04:26 am Report abuse
44 well the new deal was similar to the Obama agenda, the only difference are the subsidios (sorry for my english) to the agricultores but the soul of the doctrine it is almost the same. At the beginning Obama propose to creat new jobs based in the government investments like clean energy, he loanded money to reactive the car industry, actually he give some subsidio to the agro, the biggest difference was the money that the federal reserve has, after the realstate breakdawn that put the country in almost defoult nobady knows how much money exist.
Globalization growed a lot after the 30 but to me it is almost the same plan.
We sre USA dependents, it is a big issue, after the second war the new order was more equitative but after the cold war US ownd the world , the only two countries that sre differents with power sre Rusia and China,.
US exported democracy to almost all countries and have some kind of control in every democracy in this world, that includ Europa too.
I am in US .
47 Teaboy2 (#) Mar 16th, 2012 - 09:00 am Report abuse
@46 But neither in the 1930's or in current times have the USA reverted to protectionism to the extend that they imposed import restrictions like argentina is, so their is not comparison between what happened in the USA in the 1930's nor what has happened since 2008, with that of what argentina is currently doing.

Subsidising and loans (bailouts) to industries is not protectionism, it is a form of securing those industries and the jobs in those industries.

I feel to see how any of this has anything to do with the USA exporting democracy, you will find britain is the oldest democracy in the world. Democarcy has nothing to do with protectionism, as any form of government can impose protectionism policies, not just democratic governments.
48 pepegalleta (#) Mar 16th, 2012 - 06:38 pm Report abuse
47 teaboy US export the free markets , actually the world is under US control, but the system colapsed, that is way we are in a very deep issue regarding economy, the american way did not work anymore, I don t know what is the best route have a better future, US failed, it is domething that US will never recognise. China per example owns 20% of US, what could happen if the chineses make a desition to sale the external bonds?, US will be in bankrupsy. And this will affect all the world, I am in US and everybody here knows about it, US is an imperio in decadence, will see what happen in the next 10 years.
It is impossible to US to pay all the money that owens to different countries, US has the best army and is ready to face and fight to any country but if the economic capse continue US will be obligate to reduce the mylitar budget. then China and Rusia will rule the world.
we need a change about economic rule
49 Teaboy2 (#) Mar 16th, 2012 - 09:42 pm Report abuse
The world is not under US control at all, it is at the mercy of the worlds banks regardless of which nation those banks are from. Does the US tell vietnam what to do, or Japan, france, germany or russia? No it doesn't it can request but not order other nations to do what the US wants them to do. I do agree thouh the power of banks needs to be reined in and brought under control.
50 pepegalleta (#) Mar 17th, 2012 - 12:37 am Report abuse
59 I think US rules the world, The most important banks are under US control, Europa is under US control like it or not, ehy di you think Cameron went to talk with Oboma?, Israel too, the only too countries that are not under US control are Rusia and China.
China case is a complicated one becouse China owns 20 % of US in bons, Rusia doesn t have too much,
but the raw truth is US owns and rule the witld.
In eyropa the bedt economy is Germany and adter the second war is under US control, S Anerica is under US control too, even Venezuels with Chavez, US is who buy venezuela oil and is not gonna change, To buy Oil all over the workd the payment beefs to br on dollars, when Sadam offered oil in Euros, Us destryed Irak, Uk csn t do anything with out the US approval, it is the truth like it or bot.
For south America will be worst in the future, the 4 batallon is now in colombia and wants to be in oatagonia too.
In vietnsm and I work for a vietnsmese corporation and the banks who finance almost all the business are US banks.
FMI belings to US.
May be you don t like the truth but we all have to deal with that.
Example, what could happen if US pull out all the money invested in UK?
I think UK will be in defoult, Think about globalization, most of the US corporations are all over the world, plus US has the more powerfull army, ready to destroy every country in this world including UK.
you can t tell me that US doesn t rule this world.
Din t forget, US was actually UK till US people change the way and fought and win. The entire europa csn t fight now against US, In the 80 who was the lider to stop Rusia?, US.
Like it or not we are all US kids.
I am in California and I learned about the US power, even for Malvinas or Falklands Cameron have been with Obama, why do you think Cameron was with Obsma discussing about it?, and actually Cameron lied about what Obama said, it is in all newspapers.
Again, like it or not, US is the owner of this world

Cheers
51 British_Kirchnerist (#) Mar 17th, 2012 - 05:17 pm Report abuse
#42 As you Falklandists often say, don't say “back”! =) I'm not from there but would love to go. I do see Cristina as my Queen, because she is such a bright light of inspiration in this world of crisis and tragedy, and I'm going to keep calling her that because I can see it annoys the hell out of your lot. As for Elizabeth II, as I said here before I actually quite like her, but its still really funny you should mention her in relation to benefits (which I don't claim) without noticing her whole family lives on them =)
52 ChrisR (#) Mar 17th, 2012 - 08:55 pm Report abuse
I think B-K has finally lost his faculties and ought to be Sectioned under section 2 of the Mental Health Act 1983 for his own and the public's safety.

Anyone who considers CFK “a bright light of inspiration in this world of crisis and tragedy” has got be mentally ill or deluded to the point of obsession.
53 rebeldenacion (#) Mar 19th, 2012 - 11:40 am Report abuse
Cristina Fernández de Kirchner the current disaster president of Argentina
and the other Argentina crooks are her vice-president, Amado Boudou, he is actually an owner of the company that prints money for the government in Argentina, a major conflict of interest, but he denies it, he owns the company in the names of other friends and associates. He is being investigated and surely will end up in jail where he belongs. Cristinas 2 VERY UGLY children, Maximo and Florencia Kirchner, are also very corrupt. Maximo owns all kinds of hotels and properties adn Florencia is a film student in New York and lives in a luxury Park Avenue apartment and is known for major cocaine use. Some of us who know her in New York remember how she always used to tell us how her parents have a bank account drawn on the Nation of Argentina and for her family money is no object. These 2 corrupt children of Cristina Kirchner are self proclaimed “militants”, they belong to 2 internal terrorist groups which Cristina Kirchner finances, “La Cámpora” and “Quebracho”. “La Cámpora” goes around to the poor shantytowns around the cities in Argentina and gives the poor people a bag of groceries, a sausage sandwich called “choripan” and $20 pesos to buy their votes. These people have no choice but to accept this as they are extremely poor and have no other hope. “Quebracho” is a terrorist group which Cristina Kirchner pays to protect her, they disguise their faces and go around shaking down businesses to get money and give back to the president. They are also responsible for drug dealing, robberies and murders.
www.youtube.com/watch?v=zTBAjfgHLyk&feature=relmfu
www.youtube.com/watch?v=azwWSN2pukk
www.youtube.com/watch?v=iSvQw00SV-c
www.ripoffreport.com/government-worker/argentina-tourists-m/argentina-tourists-murdered-l-33f51.htm
www.ripoffreport.com/federal-government/cristina-kirchner/cristina-kirchner-cristina-kir-dc9b0.htm

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