SME entrepreneurs have firmly rejected the Mercosur-EU agreement

Those who launched their most categorical criticism were the entrepreneurs SMEs grouped into the inclusive network for the expansion of the workforce (RIEL). The group felt that the agreement signed concerned more "a hurry of the election campaign" than a "specific economic strategy" and expressed its deep rejection "for its potentially devastating impact" on small and medium-sized businesses Argentina and the countries that make up the bloc.

In recent years, SMEs have seen their volume of business decline as a result of the severe destruction of the internal market, as consumer purchasing power has decreased and public service charges have increased simultaneously. In addition, the exponential growth of interest rates to obtain credit and the blind opening of imports have created a devastating panorama for the sector.

According to the data of the Federal Administration of Public Revenue (AFIP) sand destroys 43 SMEs per day between January and April 2019. It's a completely different context from one that crosses the same sector, but within the framework of the European Union where they live decades of consolidation following strong protectionism.

From RIEL, they pointed out that the own supporters of the agreement admit that this will have an inevitable consequence, resulting in the disappearance of certain sectors of the economy. In this regard, they emphasized that the agreement "This will favor the most concentrated agricultural sectors – not even small producers – and will hurt small manufacturing SMEs"they stressed.

They also noted that they did not encourage "putting hope in legislation" "SME Act" that after three years of validity, "failed to put an end to business activities and jobs lost due to the current crisis".

"Although our position is the defense of the SME sector, we also understand that this agreement will not produce any benefits, even at the macroeconomic level.It is more: it will be directly harmful", they emphasized from RIEL.

In recent years, Argentina's external debt has grown exponentially through borrowing from private companies, but also from international organizations such as the International Monetary Fund. To meet this payment, foreign exchange inflows will be essential, but SME entrepreneurs have indicated that the recent agreement will aim to "perpetuate the primacy of the Argentine economy and promote the placement of industrial manufactures in our countries" .

"We are facing the false dichotomy of opening or closing the economy.We want intelligent integration to the world, thinking of sovereignty instead of delivery.The equation does not close. At least for everyone, "they concluded.