Tuesday, September 4th 2012 - 18:26 UTC

Argentine industry asks for flexible imports but strongly supports government policies

Argentina’s Industrial Union, UIA, called on the government of President Cristina Fernandez to ease the imports of inputs for manufacturing, which is suffering from shortages caused by severe controls, although at the same time was supportive of official policies to boost industry.

“This government is clearly pro-industry” said UIA Vice president Juan Carlos Sacco

“Even when non automatic licenses and tariffs are a significant help for industry, we request that input imports be authorized at a speedier pace so that it does not have an impact on local industry”, said UIA Vice-president Juan Carlos Sacco on Monday evening during the celebration of the Industry Day.

The administration of Cristina Fernandez has drastically slowed imports to ensure a healthy trade surplus of over 10 billion dollars this year to help among other things boost international reserves from the central bank that currently stand at 45 billion dollars and face debt payments close to 12 billion dollars before the end of the year.

This policy and the promotion of imports’ substitution to promote manufacturing activity and jobs has come under strong criticism from international organizations plus countries such as the US, EU, Japan and Mexico.

“This government has shown clearly that it is pro-industry. Limiting imports helped enormously but we would very much like more flexibility in the paperwork to have access to inputs and not lose competitiveness”, added Sacco.

The UIA, the strongest manufacturing lobby in Argentina represents over a thousand different industries.

Since 2011 Argentina has been implementing a foreign currency clamp with strict control over the foreign exchange market which has resulted in shortage of inputs for industry and other sectors, including car manufacturing which has helped the Argentine economy grow at a sustained 8% almost every year since 2003, according to official stats.

Sacco nevertheless supported government policies arguing that “the measures implemented are geared at impeding the developed world from flooding us with goods at dump prices. That is why not only Argentina, but the whole region is trying to protect themselves” said Sacco.

 

14 comments Feed

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1 Captain Poppy (#) Sep 04th, 2012 - 07:12 pm Report abuse
What a dilema open imports for input to manufacture. However that means U$ leave and what will they use to pay their debt. Retain the import lockdown, keep the U$ dollars to pay the debt and kill the manufacture base in doing so. It's like shoot me in the heart or shoot me in the brain.
2 Eddieposted (#) Sep 04th, 2012 - 07:39 pm Report abuse
Only a matter of time before other countries retaliate and block argentine imports.
3 Captain Poppy (#) Sep 04th, 2012 - 07:52 pm Report abuse
I see that happening, countries getting tired of their games and just not bothering to impoirt anything to them. At least the will have the beloved christina's U$ dollars. She will be happy.
4 yankeeboy (#) Sep 04th, 2012 - 09:51 pm Report abuse
What was this guys option, of course he has to “support” TMBOA if not I think he would have INDEC on his business and Home doors by the end of the day! Like all good dictators she uses the law as a hammer on her “enemies”.
5 British_Kirchnerist (#) Sep 04th, 2012 - 10:57 pm Report abuse
#1 If that really was the dilemma why is industry supporting Cristina and calling her a pro-industry President. This is a clear case of putting the real economy above the financial chicanery represented above all by Romney
6 ProRG_American (#) Sep 04th, 2012 - 11:04 pm Report abuse
When UIA says good things, somethings right!
7 Captain Poppy (#) Sep 05th, 2012 - 12:01 am Report abuse
BK yankee summed it up fairly well. What does Romney have to do with this piece? Focus or take your meds.
8 yankeeboy (#) Sep 05th, 2012 - 12:05 am Report abuse
I did mean to say AFIP insted of INDEC oops sorry.
9 Marcos Alejandro (#) Sep 05th, 2012 - 01:33 am Report abuse
8 yankeeboy

Don't you worry Fred, we already know that you are wrong all the time.
10 ArgCan (#) Sep 05th, 2012 - 02:22 am Report abuse
What a delusion Argentina is living - especially those that support her policies.
11 ElaineB (#) Sep 05th, 2012 - 08:12 am Report abuse
I read it as a nervous plea. They need imports to keep trading but don't want to anger the mad President.
12 Captain Poppy (#) Sep 05th, 2012 - 10:12 am Report abuse
As did I without wanting to ignite and set off her highness. My friend said the speech she gave the other night, she was saying that those countries that complained if import barriers are making up lies as there are no barriers.
13 yankeeboy (#) Sep 05th, 2012 - 12:18 pm Report abuse
12. Unless you go to a store and see all of the empty shelves, or get laid off because the factory has to shut down for lack of parts, or or or or
14 Captain Poppy (#) Sep 05th, 2012 - 12:43 pm Report abuse
Exactly. I was there in February and saw the shelves hollowing out. The people I know there are well aware of how she is destroying there country.

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