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Paolo Rocca, President of Techint and CEO of Tenaris and one of Argentina's most important Entrepreneurs praised Milei's Government but also showed concerns as well.
Rocca praised the shrinking of the state, elimination of the deficit, reduction of inflation, and austerity measures that are getting energy prices more in line with rational prices.
He also said the economy is beginning to recover "after overcoming the lowest point". He says the opening up of Argentina should not be seen as a threat but as an opportunity but that there must be a "leveled track that allows competition". He showed concern about the impact of the indiscriminate opening of imports on the national industry.
In the past, he has also expressed concerns about the competitiveness of Argentine manufacturing.
Import Competition: Rocca has highlighted the difficulty of competing with imports, particularly from China.
Tax Burden: He emphasizes that if import restrictions are relaxed, taxes must be reduced to maintain competitiveness.
Regional Disparities: Rocca points out that other countries in the region, such as Brazil, offer more favorable conditions for manufacturers, including subsidies and infrastructure support.
Rocca has said that competing with China in the steel industry has become "substantially impossible".
There have to be tax reductions now that import restrictions are being relaxed. Argentine manufacturers are going to have a mountain of problems.Rocca also mentioned that it's essential to end the CEPO (currency controls ASAP).
Local companies are going to struggle to compete with cheaper imports, especially because all of these countries have much lower production costs.The manufacturing sector accounts for 17% of Argentina's GDP and job cuts are inevitable if these companies can't stay competitive with these other countries. A delicate dance needs to be done between opening up imports and promoting competition through open markets and protecting domestic industries.
As Argentina continues its economic reforms, President Milei and team will need to carefully think about how to support local manufacturing while also addressing inflation and attracting FDI (foreign direct investments). The success of these efforts will likely depend on finding a middle ground that allows for increased competition while ensuring Argentine manufacturers can adapt and remain viable in a more open market environment.
www.bloomberglinea.com
Rocca praised the shrinking of the state, elimination of the deficit, reduction of inflation, and austerity measures that are getting energy prices more in line with rational prices.
He also said the economy is beginning to recover "after overcoming the lowest point". He says the opening up of Argentina should not be seen as a threat but as an opportunity but that there must be a "leveled track that allows competition". He showed concern about the impact of the indiscriminate opening of imports on the national industry.
In the past, he has also expressed concerns about the competitiveness of Argentine manufacturing.
Import Competition: Rocca has highlighted the difficulty of competing with imports, particularly from China.
Tax Burden: He emphasizes that if import restrictions are relaxed, taxes must be reduced to maintain competitiveness.
Regional Disparities: Rocca points out that other countries in the region, such as Brazil, offer more favorable conditions for manufacturers, including subsidies and infrastructure support.
Rocca has said that competing with China in the steel industry has become "substantially impossible".
There have to be tax reductions now that import restrictions are being relaxed. Argentine manufacturers are going to have a mountain of problems.Rocca also mentioned that it's essential to end the CEPO (currency controls ASAP).
Local companies are going to struggle to compete with cheaper imports, especially because all of these countries have much lower production costs.The manufacturing sector accounts for 17% of Argentina's GDP and job cuts are inevitable if these companies can't stay competitive with these other countries. A delicate dance needs to be done between opening up imports and promoting competition through open markets and protecting domestic industries.
As Argentina continues its economic reforms, President Milei and team will need to carefully think about how to support local manufacturing while also addressing inflation and attracting FDI (foreign direct investments). The success of these efforts will likely depend on finding a middle ground that allows for increased competition while ensuring Argentine manufacturers can adapt and remain viable in a more open market environment.
Paolo Rocca destacó al Gobierno de Milei pero advirtió por la apertura de las importaciones
Según el empresario, ha habido “un progreso muy importante” en la ambiciosa trasformación que se propuso La Libertad Avanza. Pese a ello, recordó que aún falta la eliminación del cepo cambiario
www.bloomberglinea.com
