MercoPress. South Atlantic News Agency

Argentine industry ‘under risk with new ‘super-license’ imports’ system

Former head of the Argentine Industrial Union Héctor Mendez asked for a more balanced approach to the issue

While Argentina’s Mercosur trade partners have adopted a cautious attitude regarding the latest measures that make it more cumbersome and bureaucratic to sell to Argentina, the country’s manufacturers and importers have warned of the consequences and called for a more balanced approach to the issue.

This week the Argentine government announced that written legal documents must be submitted to the tax agency, AFIP, ahead of approving imports. The measure becomes effective next February first.

Argentine manufacturers immediately reacted and said that the latest measures to closely monitor imports pose limitations and “put national industry under risk” for which the government should find a balance.

“Limitations always provoke reactions and worries among the affected sector. I do understand the government’s need to control imports in order to protect our domestic industry and the foreign currency reserves; it should look for reaching a healthy balance” said the former head of the Argentine Industrial Union Héctor Mendez during a radio interview.

Méndez also recalled that Argentine domestic industry depends heavily on imports. “My expertise in the plastic industry, where it currently takes one and a half years to bring a plastic injection mould is an example of what I’m saying. So, I can assure that in case imports stop or get blocked, I’ll have to stop all factory production.”

“It’s a delicate situation. At this point Argentina should have learnt what the cons of foreign dependence are. But it seems not to be the case. This is a country in which cars, just to give an example, are manufactured with 70% of their materials being imported. There is still much to be done in order to achieve a true national industry.”

Importers also questioned the Argentine government measure that sets a greater control on purchases made abroad.

Head of the Chamber of Importers of Argentina (CIRA), Diego Pérez Santisteban, bashed the measure: “More than 80% of imports go toward production in Argentina... given that there isn’t the fluency necessary for importing these types of products, there will be further problems ahead,” he said.

The CERA exporters’ chamber also asked the AFIP to “suspend” the resolution, which requires an advance import sworn statement to be submitted to the agency, and that the importing sector is calling a “super license”.