The claim was made through a formal note signed by Alejandro Díaz, CEO of AmCham Argentina, in a letter addressed to the head of Customs, Guillermo Michel.
The Chamber of Commerce of the United States in Argentina (AmCham) considered “unfeasible” price agreement which determines an increase of 5% per month for a period of 90 days.
The claim was made through a formal note signed by Alejandro Díaz, CEO of AmCham Argentina, in a letter addressed to the head of Customs, William Michel, in charge of negotiations with the companies, with a copy to the Minister of Economy, Sergio Massa.
In the document, the entity that encompasses 701 US companies that operate in the country -among which are the main mass consumption brands such as Coca Cola, Pepsi, Procter & Gamble and Unilever- argued that from November 2022 to July 2023, the price path granted to companies was between 25 and 30 points below CPI.
“This is full proof of the commitment to contribute to the search for solutions to the problems of our economy, but, in turn, it has weakened their financial and economic situation,” Díaz said.
“In addition, this situation was aggravated by the recent devaluation of 22% on August 14, the application of the Country Tax of 7.5% (according to decree 377-2023) and the cost increase over the last 3 months, well above the price increase considered under the agreement that expired this week. In fact, in the last two weeks the production costs weighted have increased between 15% and 32%, which makes the first proposed increase of 5% absolutely unfeasible,” the AmCham president remarked.
Also, from the business camera They stated that, in the future, there are elements that are not being foreseen and that will greatly exceed the path of proposed increases.
“There will be reopening truckers joint to 140%, suppliers increasing between 25% and 30% and conditioning the delivery of the raw material or the intermediate product, to mention just a few conditions”, they explained from the camera.
Source: Ambito
