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Food imports: the Government is convinced that it will lower prices, but the industry warns that it will affect employment - Infobae
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Importación de alimentos: el Gobierno está convencido de que hará bajar los precios, pero la industria advierte que afectará el empleo
Directivos de la Copal se reunieron ayer con el secretario de Comercio, Pablo Lavigne, pero no tuvieron éxito. La resolución para facilitar el ingreso de productos terminados de la canasta básica está al salir. El impacto en las fábricas locales
www.infobae.com
March 14, 2024
Copal executives met yesterday with the Secretary of Commerce, Pablo Lavigne, but they were unsuccessful. The resolution to facilitate the entry of finished products of the basic basket is on the way out. The impact on local factories
By Natalia Donato
The Government remains firmly convinced of facilitating the entry of finished products of the basic basket (food, drinks, cleaning and hygiene) from abroad (NA)
Although the industrialists of the mass consumption sector visited the offices of the Secretary of Commerce, Pablo Lavigne , this Wednesday, in order to seek equitable treatment with importers (after the benefits announced this week) , the Government remained in the firm conviction of facilitate the entry of finished products of the basic basket (food, drinks, cleaning and hygiene) from abroad because it is convinced that the measure will help lower prices, which are – according to official sources – at very high levels compared to the current value of the dollar. You'll make it? How long would it take to achieve the desired impact?
The Ministry of Commerce finished last night polishing the list of tariff positions that will enjoy the announced benefits and, according to government sources, they are quite extensive. It includes, for example, “food preparations”, among which it mentions pasta, sauces, baked goods, jams and canned foods; and also incorporated “food inputs”, which includes cocoa, concentrates, extracts, among others. In this case, this position was included because the product could not be differentiated from the input. Faced with this transcended list, private sector sources maintained doubts about which products will actually be incorporated, so once the resolution – which will be joint with the BCRA and the AFIP – is made public, they will seek to delve into further details. details.
There are more than 30 defined tariff positions (there will also be medicines packaged for retail sale) and those who import these products will be able to make their payments in 30 days (instead of the four consecutive installments in force for the vast majority of goods) and In addition, for 120 days, it was determined to suspend the collection of additional VAT and income tax on imports of these products.
The draft list of tariff positions that would have the benefits to import
Not only supermarkets and distributors that import these products for marketing will be able to access these benefits, but also many companies that produce in the country but at the same time buy other goods abroad. This is the case of many multinationals, for example, those that sell diapers. But of course, smaller firms, without internationalization, will be more complicated because their inputs to produce will have to continue paying in installments (25% installments per month).
This measure was adopted in a context of high inflation, which, although it shows a slowdown – as reflected in the February data –, reflects that many prices were at a very high value compared to those on international shelves and that “they should be one step lower,” according to the Government. Even more so when the official dollar is practically flat.
In Commerce they are convinced that this decision will facilitate the entry of imported products and greater competition will force a drop in prices. Even just knowing that supermarkets, for example, have this tool, will generate another type of negotiation with local suppliers, official sources say. In addition, companies that import, and based on the standard will be able to reduce their costs - due to the shorter payment period - would also have a better sales price to the commercial channel, analyzed in the official offices.
From the industry, meanwhile, they await the resolution – which could come out this afternoon – but warn that the increased importation of food under inequitable conditions will end up affecting employment. “The strong opening can discipline prices a little, but what you gain in price you can lose in consumption if unemployment increases a lot,” said a representative of the productive sector. The industry has 1.2 million registered jobs, so a flood of imports, in a context in which the exchange rate slows and demand falls, could affect them.
The president of Copal (and also of the UIA), Daniel Funes de Rioja, met this Wednesday with the Secretary of Commerce, Pablo Lavigne
“This issue is going to escalate more because imported products are going to enter because internally costs have risen a lot. "Whoever has a distribution channel and can import, will do so and will affect the industry," said a UIA leader, referring to the current model and the recent announcement for the mass consumption sector.
Although industrialists in the food world are expectant, they also believe that it is a decision that seeks to intimidate them and force them to lower prices in negotiations with their clients. In any case, supermarkets will begin to analyze the convenience of importing each of the items once the standard is issued, according to several sources in the sector. Will it be immediate? No. But with more facilities and a significant price differential, the chains will not hesitate. What's more, the sector had been asking for improvements in access to dollars for some products, such as bananas and tuna, for example, which are 100% imported.
In the list that was published, among foods, there appear: beef, pork, poultry, and derivatives; Fish and derivatives; Milk and derivatives; Eggs, Vegetables, Legumes, Fruits, Vegetables, Nuts and other primary foods, Spices, Cereals and their derivatives, Oilseeds and their derivatives, Fats and oils, Food preparations (pastas, sauces, baked goods, jams, canned foods, etc.) e Food inputs (extracts, concentrates, cocoa, etc.). Beers and non-alcoholic drinks are also included.
In addition, personal hygiene products are included in this list: Cotton pads and swabs, Body Deodorants, Shaving machines and foam, Insecticides for personal use, Toilet soap, Disposable Diapers, Toilet Paper, Toothpastes, Condoms, Baby Products, Feminine Protection, Shampoo and Conditioner, official sources indicated. Among the cleaning products will be detergents, Soap/Laundry Detergent and Fabric Softeners; and Lavandin and Cleaners.
