MercoPress. South Atlantic News Agency

Argentine SME's decry effects of Milei's policies

Diab's CAME had previously endorsed the Libertarian administration's initiatives

The Argentine Confederation of Medium-Sized Enterprises (CAME) is sounding the alarm over business closures, attributing the crisis to the government's dual policies of import openness and reduced consumption.

CAME President Ricardo Diab warned that a “negative cycle” is impacting the industry and commerce sectors. The guild had backed President Javier Milei's economic agenda.

Diab identified the lack of consumption recovery and the new import policies as the primary drivers of business failure. He also noted that reduced consumer spending directly translates into less demand for domestic products, leading to manufacturing slowdowns.

CAME had proposed alternatives, such as long-term installment plans to encourage spending, but met resistance. “If banks do not agree, do not accept, or [credit] card platforms do not accept [it], it is very difficult to carry out,” Diab explained.

This low-demand environment is compounded by the opening up of imports, where “Many companies see that they are not competitive with products that come mainly from China,” he further noted, adding that the trend was “growing,” affecting even traditionally strong domestic sectors like food, and other businesses —even those without prior import experience— to consider the alternative.

Diab cited the recent closures of the appliance manufacturer Whirlpool (which left 220 people jobless) and the dairy company La Suipachense as examples of significant companies shutting down.

The CAME leader also criticized the tax burden on local companies, which severely undercuts their ability to compete internationally. “If we know that any of our products are automatically subject to a 50% tax, we are already starting from a tax situation that is very difficult to resolve,” he went on to say.

Regarding employment, Diab was emphatic that “in general terms, there is no activity that is demanding employment.” He acknowledged that while labor legislation reform is needed, it will be insufficient “if there is no productive demand.”

Diab concluded that communication with the government remains challenging, characterizing the current administration's stance as purely macroeconomic. “The state today does not intervene in anything that has to do with the private sector,” he underlined.