Villarruel breaks tie in Argentina’s Senate to approve Milei’s flagship Ley Bases

[carride]

Villarruel breaks tie in Argentina's Senate to approve Milei’s flagship Ley Bases - Buenos Aires Herald

The vice president broke a 36-36 vote and the bill’s modifications will return to the lower house once individual chapters are discussed

buenosairesherald.com

 

[carride]

Eva Loperena is a political and social activist from Movimiento Evita … “The fact that foreign companies would be able to come here and not generate any revenue for Argentina is an atrocity,” she said, referencing the Incentive Framework for Large Investments (RIGI, by its Spanish initials) that would be created if the Ley Bases is approved.

This seems to be the mentioned RIGI report as PDF which KPMG consultants created in partnership with the government in December 2023 and another May summary which is also in English.

Argentina: New incentive regime for large investments includes direct and indirect tax, customs measures

Incentives include direct and indirect tax and customs benefits, as well as a special foreign exchange regime

kpmg.com

Proyecto para la creación de un nuevo régimen para grandes inversiones

De sancionarse el Proyecto de Ley, que ya cuenta con la aprobación de la Cámara de Diputados, se crearía un Régimen de Incentivo Para Grandes Inversiones aplicable a ciertos vehículos con el objetivo de incentivar las inversiones y generar condiciones de previsibilidad y estabilidad. - Marval...

www.marval.com

 

[Rich One]

Makes one wonder if any of the Protesters against the RIGI ever read the full text and its consequences..!

 

[Ries]

Makes one wonder if any of the Protesters against the RIGI ever read the full text and its consequences..!

If you add up all the protests since December, you are talking millions of people. Many that I know are college professors, lawyers, doctors, journalists, and government administrators.
So, yeah, there is no doubt in my mind that some have read the full text.

 

[Ronnie Hotdogs]

Of course there’ll be lots of losers from this principally Argentine home grown manufacturing.

Let’s face it in terms of developing Argentina into country which is prosperous, protectionist policies have been an abject failure.

 

[Ries]

Of course there’ll be lots of losers from this principally Argentine home grown manufacturing.

Let’s face it in terms of developing Argentina into country which is prosperous, protectionist policies have been an abject failure.

I could not agree less. Having worked in and around manufacturing for 40 years, I can see what the post capitalist import laws have done to US manufacturing- and its not a pretty picture.
Argentina is still very strong in all kinds of manufacturing, and its mostly done pretty well about keeping up with technology- but targeted import duties and support for export are essential to keeping that manufacturing, and the middle class jobs it supports, alive.
I have seen textile plants with modern laser and cnc technology in the conurbano, and know of metalworking plants and appliance manufacturers in the provinces with cnc tech as well. But allowing in cheap chinese imports will kill them all quickly, and not replace them with any jobs.
"prosperous" can be defined in many ways.
People in the USA who earn more in dollars, but pay much more for everything are not more prosperous.
if you deduct the 1000 richest people in the USA from its "median" wage, suddenly the salaries there are not so rosy.
The manufacturing sector in Argentina is essential to it not becoming the next El Salvador.
It needs to be nourished and supported.

the question is- Who Benefits?

 

[Ronnie Hotdogs]

I could not agree less. Having worked in and around manufacturing for 40 years, I can see what the post capitalist import laws have done to US manufacturing- and its not a pretty picture.
Argentina is still very strong in all kinds of manufacturing, and its mostly done pretty well about keeping up with technology- but targeted import duties and support for export are essential to keeping that manufacturing, and the middle class jobs it supports, alive.
I have seen textile plants with modern laser and cnc technology in the conurbano, and know of metalworking plants and appliance manufacturers in the provinces with cnc tech as well. But allowing in cheap chinese imports will kill them all quickly, and not replace them with any jobs.
"prosperous" can be defined in many ways.
People in the USA who earn more in dollars, but pay much more for everything are not more prosperous.
if you deduct the 1000 richest people in the USA from its "median" wage, suddenly the salaries there are not so rosy.
The manufacturing sector in Argentina is essential to it not becoming the next El Salvador.
It needs to be nourished and supported.

the question is- Who Benefits?

And yet workers here barely get a living wage?

Have you seen the houses where most of the working class live? It might be all rosy mixing with the owners of such places I accept.

Whose benefitting?

 

[Ries]

And yet workers here barely get a living wage?

Have you seen the houses where most of the working class live? It might be all rosy mixing with the owners of such places I accept.

Whose benefitting?

the fact that poor people exist, which is obviously true, does not justify getting rid of more jobs and making more people poorer. the argentine economy actually has a lot of manufacturing, and most of it is exportable if the government would support it.
Turkey is a good example of a country that is also plagued with a dictatorial autocrat screwing things up- but one that has a functioning export economy of similar types of goods. They export machinery, metal products, autos, clothing, shoes, and a lot of other products that Argentina also makes, at similar price and quality points- the difference is for decades, the Turks have engineered tax, import/export laws, and government support to encourage exports, not just give up and allow chinese industry to take over their markets.

 

[Ronnie Hotdogs]

I’m afraid the results of 70 years of protectionism are there for all to see.

Name 3 Argentine companies that can compete on the world stage.

 

[ArgentinaVet]

Manufacturing things domestically in and of itself is not helpful for market participants or the macroeconomic situation at large.

There are thing that are currently being manufactured/ exported currently and/or could be done so competitively in the medium term that should be focused on.

1. Automobiles- Argentina is currently a major manufacturer and exporter of pickup trucks (including the diesel engines in them) for the South American market. Toyota, Ford, Volkswagen and Nissan/Renault all manufacture and export mid sized pickup trucks for the South American market that are highly desirable and highly profitable.

2. Pharmaceutical manufacturing- this currently exists, is competitive and could be greatly expanded upon for the export market.

3. Copper smelting- The ore reserves are present along the entire Andres corridor and processing the copper domestically for export could become a major industry as copper will be much, much more expensive in the future. Keep an eye on Elon Musk with regards to this.

4. Lithium processing/ battery production- The lithium reserves are well known and discussed. Again, keep an eye on Elon Musk with regards to this.

5. Liquified Natural Gas- Petronas, a Malaysia company, already has a deal to start building the first LNG plant which would allow exports from the Vaca Muerta gas patch.

6. Oil refining- exports of gasoline and diesel; this has become a larger margin business in recent years as the environmental lobby has made building oil refineries in many countries almost impossible. Refined product is totally fungible and can be exported anywhere around the world.

What should not be manufactured is low end clothing, textiles, electronics , household goods, appliances etc that the entire population needs for survival and are simply non competitive with goods made in Asia. It doesn't make any economic sense to have the entire population overpaying for low quality overpriced crap so a relatively small niche can have jobs that shouldn't exist.