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Argentina: higher tariffs on capital goods, soft loans for industry and fiscal bonus

Wednesday, June 6th 2012 - 23:03 UTC
Full article 25 comments

Argentine President Cristina Fernandez announced higher tariffs for capital goods and the extension until the end of the year of the “fiscal bonus” with the purpose of “sustaining current countercyclical policies” given the international economic crisis. Read full article

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  • briton

    ah
    the angel speaks,
    all will be well then.

    Jun 06th, 2012 - 11:30 pm - Link - Report abuse 0
  • rnbgr

    This will work for a while to preserve jobs in Argentina until the countries that Argentina is blocking/delaying and raising tariffs on decide to retaliate meanwhile it will only drive inflation

    Jun 06th, 2012 - 11:32 pm - Link - Report abuse 0
  • expbrit

    ”... last month mining companies were informed they would be required to submit requests to the government 120 days before importing goods and set up an “import substitution” department to boost buying of locally made goods.

    Two questions:
    What exactly is an “import substitution” department?
    Is anyone taking bets on how long she can keep this up?

    Jun 07th, 2012 - 04:01 am - Link - Report abuse 0
  • Idlehands

    An “Import Substitution Department” is a group of government employees that roam the nation with baseball bats to convince manufacturers that some precision foreign part they are buying should be replaced by one made in Argentina out of milk bottle tops.

    You have a command economy - congratulations

    Jun 07th, 2012 - 04:44 am - Link - Report abuse 0
  • Xect

    Heh @ post 4.

    Essentially this is the opposite of a well run economy.

    You've got to wonder who makes up these ridiculous policies for her? Did they go to school never mind study economics?

    Jun 07th, 2012 - 05:55 am - Link - Report abuse 0
  • expbrit

    @4 I thought it might be something along those lines :-)

    Most of the mines I have worked at use CAT Heavy Diesel Earthmoving equipment, Dump Trucks etc.

    How many bottle tops would it take to repair one of these babies?

    http://www.google.co.nz/imgres?q=cat+mining+equipment&hl=en&biw=959&bih=861&tbm=isch&tbnid=3rUYSX-iFDysYM:&imgrefurl=http://www.equipmentworld.com/cat-completes-bucyrus-acquisition/&docid=j9qJUijxdYFa-M&imgurl=http://www.equipmentworld.com/files/2011/07/Cat-7495-shovel-loading-795F-AC.jpg&w=1600&h=1200&ei=40jQT83SKcuhiQfmuIntCw&zoom=1&iact=hc&vpx=523&vpy=357&dur=8533&hovh=194&hovw=259&tx=54&ty=214&sig=108299463367059900894&page=2&tbnh=153&tbnw=196&start=16&ndsp=20&ved=1t:429,r:14,s:16,i:137

    Jun 07th, 2012 - 06:26 am - Link - Report abuse 0
  • Tabutos

    Its not her fault its everyone else! that's all i read for that statement. ships sinking time for Ms Tired face to jump ship

    Jun 07th, 2012 - 07:12 am - Link - Report abuse 0
  • rnbgr

    Import substitution is economic philoshy, the theory is that it helps countries who have underdeveloped industries and are primarily exporters of commodities “industrialize” by protecting domestic industries/jobs. the countries using this block specific imports and force local companies/consumers to buy from only local sources. Brazil and Argentina were firm believers in this from the 1930s through the 1980s. Others claim all major economies have done this in the past and still do it today.

    Jun 07th, 2012 - 07:29 am - Link - Report abuse 0
  • yankeeboy

    For 9 yrs the Ks have done the exact opposite of what was needed to set the economy up for long term growth.
    It is all imploding now. All of theses ridiculous, feeble and stop gap measures will make this hard landing even worse.
    The provinces are out of pesos, CFK will be forced to print to pay the bills. It is the only “trick” that is left in the bag.
    So what is next, devaluations and hyper inflation. The mass layoffs have already begun with Renault laying off 2000 workers, the rest of the car mfg will follow shortly. Arg may get their wish of lower imports except they will have even lower exports to make up the difference.
    dumb dumb people

    Jun 07th, 2012 - 09:44 am - Link - Report abuse 0
  • GreekYoghurt

    'Import substitution' as a philosophy is like British people trying to make an iPad without screens from Korea, chipsets from Taiwan and labour from China. Lord knows what the final product would look like and how much it would cost, but I'm relatively sure it would be furking massive, weigh quite a lot and be very expensive to buy.

    The outcome is that I don't spend more money on something that is ultimately worse. Multiply this throughout the population and remind yourselves that people generally don't spend money on cr@p, and you'll see that the economy just stops dead.

    The only place I can think of where Import substitution may have worked is South Korea, but let's face it... their suicide rate is massive, and their music is dreadful.

    Jun 07th, 2012 - 09:57 am - Link - Report abuse 0
  • wesley mouch

    Small businesses import capital goods to help grow and employ more people. This will inhibit this, further creating more unemployment. I am enjoying watching Argentina being destroyed by the Peronists.

    Jun 07th, 2012 - 11:03 am - Link - Report abuse 0
  • Simon68

    11 wesley mouch (#)
    Jun 07th, 2012 - 11:03 am

    Amazing country Argentina, the peronists have been constantly destroying her for the last 70 years, and somehow she keeps struggling along.
    The down time is bloody painfull and the up time is great, I guess Argentina is, like Kretina, bi-polar and there is no medication for a whole country!!!!

    Jun 07th, 2012 - 01:21 pm - Link - Report abuse 0
  • hammerhead993

    @4 Sir, your post is funny as hell...

    Jun 07th, 2012 - 02:52 pm - Link - Report abuse 0
  • Conqueror

    Let's just wait, people. Who knows what may happen?

    Then we can laugh ourselves sick.

    NOTE: Where are all the “faithful” argie bloggers?

    Jun 07th, 2012 - 04:46 pm - Link - Report abuse 0
  • hammerhead993

    @14 British_Kirchernerist is in the hospital with shrapnel in his pecker after his CFK blowup doll actually...blew up. Tobias, i.e., all of the others, has lost it mentally and is “speaking in tongues” in other threads.

    Jun 07th, 2012 - 04:56 pm - Link - Report abuse 0
  • Brit Bob

    From The Nasdaq 7.6.12

    CFK has resorted to blocking imports and rationing the foreign currency Argentines can purchase to make sure enough dollars are in hand at the Central Bank to pay government creditors. Those measures have sent a chill through the economy as factories face shortages of imported parts and the heavily dollarized real estate market grinds to a halt for the want of greenbacks. Auto production also fell 24% during the year.

    Jun 07th, 2012 - 06:48 pm - Link - Report abuse 0
  • SussieUS

    To all ....
    I have said many times that former president Carlos Menen ruined the economy of my country. Since then is difficult to find an economic plan.
    The argentine leader like the US president Barack Obama are both BIPOLAR and their ability to present a good economic plan is very difficult. Both leaders need support. Not negative comments.
    I believe all of you know the US has the highest BIPOLAR RATE IN 11 NATIONS. In 1980 20 millons US citizens took Prozac, the same medicine Diana Spencer took for years. In her case, the medicine failed because she did not receive SUPPORT.
    In this diffcult economic times, the argentine leader is trying to do her best.
    The UK is facing another recession but I DO NOT LAUGH..people are suffering hunger...
    If any of you have a better economic plan for Argentina and the US, PLEASE STAND UP.

    Jun 07th, 2012 - 06:52 pm - Link - Report abuse 0
  • GreekYoghurt

    @17 I think it's a bit of a stretch to say Carlos Menen ruined the economy of the USA.

    Jun 07th, 2012 - 07:07 pm - Link - Report abuse 0
  • SussieUS

    @ GreekYoughurt(#)
    I did not say Carlos Menen “ruined the US economy”.
    Carlos Menen ruined the economy of Argentina.
    Bush ruined the US economy.The US deficit of 15 trillon dollars is increasing.. most of the US citizens are suffering unemployment, high food prices, ...CNN tells the truth.

    Jun 07th, 2012 - 07:25 pm - Link - Report abuse 0
  • GreekYoghurt

    @19 Sure, but you're a US citizen, so 'your country' is USA.

    Jun 07th, 2012 - 07:37 pm - Link - Report abuse 0
  • British_Kirchnerist

    #15 No I've just been away having a real life, I don't live for this blog you know. But since you were “kind” enough t0 mention me, I'd just like to say I fully support Cristina in refusing to bow to the austerity consensus and protecting jobs, standing up for the poor is what makes her the real iron lady =)

    #17 Sussie thats a good post, I agree with you about Menem and Bush but I'd warn you that Romney stands for the same disastrous neoliberalism that ruined the economies of both your couunties in the past

    Jun 07th, 2012 - 08:36 pm - Link - Report abuse 0
  • Self Determination

    Protectionism doesn't work, it is an admission of defeat, so far they have managed to piss-off Mercosur,USA,EEC the WTO and numerous individual trading nations including Spain.
    To which the standard reply from the clown Timmerman is “Its not our fault its the Malvinas”
    Self deluded,history re-writing comedy show.
    30% Inflation, peso collapsing, energy crisis, Loan defaulter,capital flight,Tick Tock stand back and enjoy the carnage.

    Jun 07th, 2012 - 09:29 pm - Link - Report abuse 0
  • British_Kirchnerist

    Forgot to say in my last comment, but isn't she looking beautiful in the picture....and not tired at all =)

    Jun 08th, 2012 - 08:51 am - Link - Report abuse 0
  • expbrit

    @ 1315 Sir, your post is funnier ....

    @ 17 In these diffcult economic times, the Argentine leader will do anything to hide the truth about just how badly she has screwed you over.

    @ 23 ....and not tired at all =) Chuckle, wasn't sure you “got” the reference :)

    Have a look at this. http://en.mercopress.com/2012/06/07/new-zealanders-misinformed-about-malvinas-war-says-argentine-ambassador#comment132463 The buggers are all over the place :-)

    Jun 08th, 2012 - 09:42 am - Link - Report abuse 0
  • Britishbulldog

    Stop all funding to this corrupt country called Argentina bring down this corrupt country and all who govern Argentina.
    www.StopFundingArgentina.org

    Anyone reading this outside of Argentina sign THE FORM NOW.

    Jun 08th, 2012 - 07:34 pm - Link - Report abuse 0

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