Milei's in charge !!!…Wow !!!

[Lanick]

You can wait for a long time, international companies have come and gone, because (in many cases) paying a greater than 100% effective tax rate is not a sustainable business model if you are not following Argentine tax avoidance techniques.

International companies and competition will only come back after the dust settles and Argentine politics proves it can remain business friendly over longer periods of time. So not in the first 10 years.

In the short term, it would be mainly Argentines who need to make the investments.

I personally know a few global brands already started checking out retail properties. 10 years?? Maybe 10 months! All they needed was removing this official rate.

 

[mikic007]

I personally know a few global brands already started checking out retail properties. 10 years?? Maybe 10 months! All they needed was removing this official rate.

Of course, retailers are always at your door, but these aren't investments Argentina needs. To set a shop for big international companies is nothing, zero liability. Ikea is a bit different, since they are usually relying also on locally made products, so there is some mini potential. To set up clothes store you need few containers, half capable manager and small team, rent a venue and say a word, and you are all set. I guess few months, since you don't want everyone is there before you.

Investments in industry are a bit different, although for many, cheap labour might be enough to try. But that certainly takes way longer than shops to set up, and risk is much higher. Investors aren't stupid, and Argentina's geographical position isn't exactly amazing. There should be a lot of knocking on the doors of existing foreign businesses to expand, offering incentives and give assurances, as well as working on new to come.

There is plenty to do in agriculture as well, in my opinion. World needs food, and always will, but Argentina is lagging behind its potential a lot.

Maybe some plan is already in motion, I certainly hope so, because calling people lazy while not trying to give them work just isn't productive.

 

[Lanick]

Of course, retailers are always at your door, but these aren't investments Argentina needs. To set a shop for big international companies is nothing, zero liability. Ikea is a bit different, since they are usually relying also on locally made products, so there is some mini potential. To set up clothes store you need few containers, half capable manager and small team, rent a venue and say a word, and you are all set. I guess few months, since you don't want everyone is there before you.

Investments in industry are a bit different, although for many, cheap labour might be enough to try. But that certainly takes way longer than shops to set up, and risk is much higher. Investors aren't stupid, and Argentina's geographical position isn't exactly amazing. There should be a lot of knocking on the doors of existing foreign businesses to expand, offering incentives and give assurances, as well as working on new to come.

There is plenty to do in agriculture as well, in my opinion. World needs food, and always will, but Argentina is lagging behind its potential a lot.

Maybe some plan is already in motion, I certainly hope so, because calling people lazy while not trying to give them work just isn't productive.

Agree!

I was just referring to companies/brands not having any competition at all due to protectionism. Of course it is not the ideal FDI but I was just trying to say the previous system was not growth oriented at all. Also the system made it almost impossible to export. A nation should export products to earn money.

 

[wrangler]

I think it's too early to determine how this will all work out. Foreign investment probably won't arrive until after we see major changes. I appreciate the legalization of 'cuevas' and trading in 'divisas', including cryptocurrencies. I fully support that.

However, many goods and services will likely become unaffordable for a lot of Argentines. The country couldn't continue on its previous path. The devaluation of the peso was becoming unsustainable, and we might have faced inflation similar to that in Venezuela.

I definitely wouldn't be breaking out the champagne just yet, and it's likely you won't be able to for a few years either.

 

[Rich One]

I fail to understand why this government sends Trade Missions $$ to smaller countries, to attract new investments. Instead of encouraging major international foreign companies established in Argentina to expand their local investments..?
Perhaps established foreign companies know all the drawbacks and caveats for doing business in Argentina. ..?

 

[Quilombo]

I fail to understand why this government sends Trade Missions $$ to smaller countries, to attract new investments. Instead of encouraging major international foreign companies established in Argentina to expand their local investments..?
Perhaps established foreign companies know all the drawbacks and caveats for doing business in Argentina. ..?

That'd be a safe assumption. Anyone with a passing knowledge of Argentine economics knows that the only people who get rich here are those in bed with the government, and even then, the juice isn't worth the squeeze compared to say Brazil.