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More Argentine measures “to preserve re-industrialization process”

Wednesday, February 16th 2011 - 01:17 UTC
Full article 4 comments
Industry minister Debora Giorgi determined to promote local manufacturing Industry minister Debora Giorgi determined to promote local manufacturing

Argentina extended the application of LNA non-automatic licenses to a list of new imported products, which include metallurgical products, electronics, some fabrics, high-range automobiles, bicycles and bicycle parts.

Industry Minister Debora Giorgi said that the resolution 45 published Tuesday on the Official Gazette looks to “preserve national products in the internal market” and “the process of reindustrialization generated by the productive model launched in 2003”.

According to Giorgi, the new licenses are applied in sectors where Argentine production levels are high enough to meet demands and where increasing investments are registered.

“The commercial strategies used to back up employment gave way to satisfactory results within the national industrial sector, which in turn led to the substitution of imports valued at 9.2 billion US dollars”, said Giorgi.

The minister also pointed out that those sectors whose importations already had LNA licenses are those which contributed most to the substitution of imported products. These include the automotive sector, the electronic sector and the footwear and textile sector.

Giorgi mentioned that the Argentine industry registered historic highs in 2010 in the footwear sector, with the fabrication of 105 million pairs of shoes. Also, one million refrigerators were manufactured and the toys sector recovered 60% of the local market’s suppliers.

Finally, Giorgi said that the Argentine government is acting according to the norms outlined by the World Trade Organization and that it has taken “defence measures to protect national production rates”, as is done on international levels, in order to preserve employment.

“This doesn’t mean that our country can’t import’ products, she said.

The LNA non-automatic licences system enables the Argentine government to slow up to 60 days listed imports. This mechanism has already caused trade conflicts with Mercosur partners and was geared principally to Asian and Brazilian imports in areas considered strategic or where imports rapidly conquer domestic markets pushing aside local production.

Argentina which still has limited access to voluntary money markets because of the consequences of the 2001/02 default is forced to have a mercantile approach to the trade surplus and has acted accordingly to ensure this goal.

The deficit with Brazil, Argentina’s main trade partner reached 4 billion US dollars in 2010 (32 billion bilateral exchange) and the issue has been on the short list of issues under discussion with Brazilian authorities. President Dilma Rousseff visited her Argentine counterpart Cristina Fernandez de Kirchner January 31st.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Redhoyt

    Smacks of protectionism to me !

    Feb 16th, 2011 - 01:53 am 0
  • Fido Dido

    step by step we are entering in bigger trade wars. We are already in a currency war. add those two up and we all know where that will head to.

    Feb 16th, 2011 - 02:14 am 0
  • Dorian

    In reality, there is very little “free trade”, especially with China, and in any case China needs Argentina's food a lot more than Argentina needs China's plastic junk. So, why not play hard ball? As for Brazil, why should Argentina transfer $3B each year into its coffers when Argentine workers could make the same products? It is necessary to reverse some of the extremes of Menemism. It is shameful to see abandoned factories in Argentina. One can be pro-business AND pro-people, while realizing that EXTREME “FREE TRADE” MOSTLY HELPS THE RICH. BRAVA, CFK.

    Feb 16th, 2011 - 09:21 am 0
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