MercoPress. South Atlantic News Agency

Tierra del Fuego in dire straits

Melella condemned Maduro's capture

The Argentine province of Tierra del Fuego is grappling with a deepening economic and institutional crisis, amid mounting industrial layoffs, high-level government resignations, and a sharp local debate over the US military intervention in Venezuela.

 

The commercial and industrial sectors in Tierra del Fuego reported a “bleak” conclusion to 2025, with 160 layoffs in the commercial sector alone. Labor leaders attribute the decline to a “lethal combination” of national and provincial policies.

The opening of imports, the reduction of tax benefits under the industrial promotion regime, and the slashing of national funds have severely impacted the local economy.

In early November, the electronics giant Newsan dismissed over 150 workers. Displaced employees reported receiving termination notices without cause, even while on medical leave or vacation.

Daniel Rivarola, head of the Trade Employees Center (CEC), warned that unregistered employment has surged to 20% as laid-off workers attempt to open small, informal businesses to survive.

The economic strain has coincided with a significant shake-up in Governor Gustavo Melella’s administration. Effective January 1, 2026, several key officials have departed their posts.

Francisco Devita resigned as Economy Minister after two years, citing the extreme stress of managing the province’s finances during the current crisis.

Additionally, the resignations of Andrea Bianchi (Secretary of Environment) and Ayelén Boryka (Undersecretary of Natural Resource Management) were also accepted. These departures suggest a broader restructuring of the provincial cabinet as it faces fiscal deficits and industrial stagnation.

Despite the local turmoil, Tierra del Fuego’s political leadership has taken a firm stance on the capture of Nicolás Maduro in Venezuela. Governor Melella publicly condemned the US military actions, stating that “the lack of democracy must be remedied with more and better democracy.” He emphasized that Latin America must remain a “territory of peace and sovereignty.”

Ushuaia Mayor Walter Vuoto joined the condemnation, repudiating any military action that violates the territorial integrity of a nation. He asserted that no power can claim the right to intervene “outside the law.”

Tierra del Fuego is the Argentine province technically holding jurisdiction over the Falkland/Malvinas Islands and other BOTs (British Overseas Territories) in the South Atlantic.