industrialists demand an official agenda for adaptation

The country's major industries and SMEs agree that the agreement between Mercosur and the European Union constitutes a unique opportunity for Argentina, but that it is doomed to failure if macroeconomic reforms are not implemented. In this business sector, one wonders if the necessary conditions can be met for the treaty to be effective.

The main challenge facing Argentina in favoring this agreement is to implement profound changes: a tax system "that encourages production", exchange stability, a sound financial system and, at the same time, a industrial, technological and financial environment educational activities equivalent to those of our new partners ".

This was estimated by the economist Gabriel Vienni, director of technical departments of the Argentine Industrial Union (UIA), for whom it is of vital importance that at the time of l & 39; entering into force of the agreement, the Argentine economy lies in a context of "expansion and stability". "

According to him, the economies of Mercosur and the European Union are "very asymmetrical" as regards the level of macroeconomic stability, the development, the size and the coordination of public policies.

For this reason, he felt that signing agreements of this nature and economic openness "can not be an end in itself, but should constitute a set of very aggressive public policies that promote competitiveness and competitiveness. Aggregation of value in our country ". "

"Basically, we need to work on designing a tax system that encourages high value-added production and exports, as well as the development of an infrastructure plan that reduces transportation costs and the cost of transportation." logistics, which must accompany the development of policies aimed at productive development and take advantage of the benefits of the new industry 4.0, "added Vienni, in dialogue with iProfessionnel.

He also felt that it was "essential" that Argentina achieve exchange rate stability and a "deep" financial system geared towards productive activity (tiered credit and competitive interest rates).

While in the European Union, domestic credit to the private sector accounts for about 86% of its product, it is currently less than 15% in Argentina.

For the economist, although the agreement is an "important fact for the international integration of the country", at least two elements "call for caution" when conducting a sectoral impact badysis, up to what it is known. in detail the "fine print" of the treaty; In addition, he said that "the situation in which his signature stands is far from ideal".

With respect to the scope, Vienni said signing agreements of this nature "offers opportunities and challenges to the parties, but sectoral outcomes may depend on aspects related to its thin character. : quotas, rate of tariff reduction, regulatory and supervisory institutions, rules of origin ", among others.

"We still need to count the beans to have an opinion based on all the possible impacts of what has been signed," he said, adding that "the fact that the Argentine industry has stagnated for ten years with the decline in employment tensions in terms of productivity, investment and labor market ".

In this context, he stressed that the country "has the immense challenge of carrying out over the next five years a series of transformations that could not be achieved in recent decades". During this process, we must not forget that the industrial sector generates jobs. quality, with levels of formality, training and wages well above the national average, and this is where technological innovation is generated mainly at the international level, so that this process can not be any sector.

The agreement "means access to a market of 500 million consumers, which could dramatically increase the size of our economy, help boost exports and accelerate technological development and know-how," he said. he declared.

Industrial SMEs also call for reforms

The president of Industrial Pymes Argentinas (IPA), Daniel Rosato, is in favor of the agreement. However, like what they say of the UIA, he said that it was necessary in the country to pursue structural reforms, such as taxation and labor, "allow us to win in competitiveness. "

"Today, the differences with Europe are so huge that it would be impossible for us to compete, not only for SMEs, but also for the big industries," he said. leader.

For example, he pointed out that European manufacturers finance themselves at a zero rate, "or at 2 or 3% maximum, in Argentina we have rates close to 60%, with this level of interest, it is impossible to compete ".

"This should also reduce the cost of energy, which is very high for our sector," added the business man. iProfessionnel.

In his view, some sectors will benefit quickly, such as agriculture; but he said that without structural reforms, the industry would find it impossible to compete.

Rosato confessed that before this agreement, "I would like to be optimistic, hope that the reforms will be made, but I still have doubts".

He cited as an example countries like Chile that opened up their markets and ended up being harmed.

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