MercoPress. South Atlantic News Agency

Scioli off to Brazil in a move to cut down Argentina's trade deficit

Scioli is playing an increasingly active role in the Alberto Fernández administration.

Argentina's Productive Development Minister Daniel Scioli is taking center stage this week as he leaves Wednesday for Sao Paulo on a mission to overcome the sustained trade deficit between his country and Brazil, where he has served as Ambassador up until last month when he was summoned to Buenos Aires to replace Matías Kulfas.

Read also: Argentina's trade balance with Brazil in the red for 6th month in a row

Scioli will travel alongside newly-appointed Economy Minister Silvina Batakis and other government officials, such as Entre Ríos Governor Gustavo Bordet and Argentine Industrial Union (UIA) Chairman, Daniel Funes de Rioja.

The former Vice President's network of contacts in the neighboring country makes his presence overshadow that of the lesser-known Batakis, who is a step below him in the unwritten hierarchy of politicians after she served as Economy Minister of the Province of Buenos Aires when Scioli was governor.

In addition to the business meetings, the Minister of Productive Development will seek to promote a compensation mechanism for imports and exports to reduce the outflow of hard currency reserves.

“In the last 15 years, Argentina has had a deficit of US$ 52 billion with respect to Brazil, and in order to reverse it, it is not necessary to buy less, but to sell more, and in this sense, the role of regional economies is fundamental,” Casa Rosada sources told reporters in Buenos Aires.

Scioli's agenda consists of a series of business rounds with Brazilian firms to sell Argentine products locally, including a meeting with Josué Gomes da Silva, chairman of the Federation of Industries of the State of São Paulo (Fiesp).

After a US$ 66 million surplus in 2021, Argentina returned to a negative trade balance with the largest country in the region, which it badly needs to reverse.

Scioli's mission will also focus on the Single and Free Exchange Market (MULC) for Argentine companies in need of foreign inputs to develop local industries.

Earlier this week, Scioli asked local producers and retailers to guarantee price stability and to normalize the supply of products. He also met with banking executives to promote access to productive credit to boost consumption. On Tuesday, Scioli met with supermarket chain moguls to devise strategies regarding retail operations. “We discussed strategies to guarantee the supply of products in the gondola and establish a path of price stability,” Scioli said through his Twitter account.

Scioli also met with US Ambassador Marc Stanley to discuss the productive development agenda between both countries ahead of the upcoming meeting between Presidents Alberto Fernández and Joseph Biden. “Thanks to the new Minister of Productive Development @danielscioli for today's meeting. We look forward to continuing to work together with Argentina to create new markets and opportunities for economic development and to strengthen a solid, reliable, and lasting relationship between our countries,” said the U.S. diplomat on social media.

“I thank U.S. Ambassador Marc R. Stanley that in the run-up to the meeting between Presidents @alferdez and @JoeBiden we had a meeting with a focus on the productive development agenda,” replied Scioli (@danielscioli)

Last but not least, Scioli met this week with governors of Argentina's “Grand North” provinces to boost local productivity. Formosa's Gildo Insfrán, Misiones' Oscar Herrera Ahuad, Chaco's Jorge Capitanich, and Salta's Gustavo Sáenz heard the minister's proposals.

Tucumán's Governor is no other than Cabinet Chief Juan Manzur, currently on leave from his provincial duties. Manzur and acting Governor Osvaldo Jaldo had been with President Fernández during the July 9 Independence Day Celebrations.