MercoPress, en Español

Montevideo, July 16th 2019 - 16:27 UTC

 

 

Argentina's current import restrictions forecasted to continue during 2015

Wednesday, January 28th 2015 - 07:33 UTC
Full article 7 comments
“The perspective of a low trade surplus would impose strong constraints on a wider flexibilization on the current import scheme” said Pérez Santisteban “The perspective of a low trade surplus would impose strong constraints on a wider flexibilization on the current import scheme” said Pérez Santisteban
CIRA also highlighted Central Bank foreign currency reserves have plunged from the 48 billion dollars available in 2010 to the current 31.276 billion. CIRA also highlighted Central Bank foreign currency reserves have plunged from the 48 billion dollars available in 2010 to the current 31.276 billion.

A decrease in Argentina's trade surplus this year would make it difficult for the federal government to end the current restrictions on imports, which force companies to file an affidavit in order to obtain authorization, the Argentine Importers Chamber (CIRA) said this week, only days after the country’s 2014 trade data was revealed to be the worst since 2001.

 “The perspective of a low trade surplus this year would impose strong constraints on a wider flexibilization on the current import scheme,” Diego Pérez Santisteban, the head of the chamber, said.

Argentina's trade surplus narrowed 17% in 2014 to 6.6 billion dollars, the lowest figure since 2001 when a 6.2 billion dollars surplus was registered, the INDEC statistics bureau reported. Imports dropped 11% and totaled 65.2 billion, while exports declined 17% to 71.9 billion.

The annual results came after INDEC revealed that December was a bad month for trade. The trade surplus registered in the last month of 2014 was 74 million dollars, which is 31% lower than the same month last year. Exports narrowed 13% (4.5bn), a drop which was also seen on imports 4.4bn.

“Looking after the Central Bank’s foreign currency reserves became the most important objective of the federal government’s economic policy and in that context everything that means spending dollars is being analyzed carefully,” Santiesteban said.

“In a certain way, the government decided with its economic policy to give up on growth in order to decrease the demand of dollars and maintain a calm situation in the market.”

CIRA also highlighted Central Bank foreign currency reserves have plunged from the 48 billion dollars available in 2010 to the current 31.276 billion.

The main sector responsible for the drop in imports last year was the vehicle sector as fewer sales in the country led to a 49% decline in car imports, compared to 2013. At the same time, capital goods accessories dropped 22%, fuel and lubricants 4%, intermediate goods 11% and consumption goods 10%.

December saw a whopping 61% drop in car imports, followed by a 28% drop in capital goods accessories and four percent on intermediate goods.

Santiesteban said the lack of foreign investment, the drop in exports because of lower demand of Brazil, Argentina’s main commercial partner, and lower prices of grains and soybeans have led to a lower number of dollars being brought in the country, funds used to finance Argentina’s imports.

Categories: Politics, Argentina.

Top Comments

Disclaimer & comment rules
  • ChrisR

    YES!

    The argies have discovered a NEW way to trade.

    First, you restrict imports that your manufactureres desperately need to make the goods they export. TICK

    Then your exports are reduced because of the lack of materials and parts. TICK

    Then the balance of payments suffers in direct relationship to the lack of parts. TICK

    Hang on a cotton picking minute!

    This is a load of bollocks! It will never wotk this way.

    Ah! But it is the ARGIE way!

    Oh well, I tried. :o)

    Jan 28th, 2015 - 11:14 am 0
  • Conqueror

    When will the EU, Japan and the United States make another complaint to the WTO? When will the sanctions start? Russia is failing under sanctions. Goodbye argieland! When you've collapsed, the world will take what it wants.

    Jan 28th, 2015 - 01:18 pm 0
  • yankeeboy

    1. They call it Heterodoxy, Argentina is 169 in ranking of best countries to do business, right along Venezuela and Iran.
    Bahahahaha

    Cue Auto Mfgs leaving....

    All Int'l companies have “relocated” their high level expats out of Argentina.
    Gee I wonder why?

    I hope the car companies leave this year.

    Jan 28th, 2015 - 02:40 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!