The Minister of Economy and candidate for president of UxP, Sergio Massa, visited the industrial entrepreneurs at the Buenos Aires headquarters of the Argentine Industrial Union (UIA). Given the main industrial complaint about the problems with imports, he promised that if he wins the presidency in the runoff the SIRA will be normalized within a period of up to 60 days.
Regarding the future of the dollar, he ruled out a “sudden devaluation” and proposed reducing the exchange rate gap with more exports and money laundering. In addition, Massa called on them to join the next “unity government,” a proposal that the UIA considered “interesting.” At the end of the meeting he was applauded by a table of 25 industrialists.
From the UIA they clarified that Massa’s visit occurred within the framework of the invitation made by the business union to the two candidates who will compete on November 19 in the runoff. “The invitation letters from the UIA came out on the same day and at the same time, we had Massa’s confirmation immediately, but we still did not have Milei’s,” said the president of the UIA, Daniel Funes de Rioja, in dialogue with the media. .
The future of the dollar and the SIRA
One of the main concerns that businessmen conveyed to him was about the current macroeconomic situation. Although he did not use the phrase “stabilization plan,” Funes said: “He did talk about stabilizing, doing a sector-by-sector analysis and accommodating relative prices, seeking refinancing of the external debt and not breaking contracts.” The current Minister of Economy promised that if he becomes president he will seek a fiscal and commercial surplus and will move forward with “tax simplification.” He told them that there will be the elimination of internal taxes on the increase in industrial exports and that he will “build a new federal pact that will simplify tax issues that affect the industry,” the UIA revealed in a statement.
Although the candidate was invited to the UIA to talk about his proposals if he were president, it was inevitable to touch on the main issue that worries companies today: the import system called “SIRA.” As revealed by sources from the economic team who participated in the meeting, Massa assured that approvals will be normalized within a period of between 60 and 90 days after the elections.
The “transition” of the measures of the future Massa government if it reaches the Casa Rosada was one of the axes: regarding the future of the dollar, the minister spoke of “building a path of exchange simplification without pain.” Official sources revealed that he told them: “If you think about a brutal devaluation like Milei with dollarization, don’t count on me.” To reduce the exchange gap, he promised to increase reserves, via an increase in exports of more than US$40 billion in 2024 and the approval of money laundering in a Congress that could practically remain in a Peronist majority. Additionally, he revealed that he will seek external financing through an incentive for Argentine bonds.
“The SIRAs are going to be normalized because doors of new instruments will open when a consolidated Government takes office. There are sovereigns willing to build a bridge on the basis of being financial agents of international trade,” said a source from the Government team that participated in the meeting. From the UIA, with Diego Coatz as the entity’s chief economist, they presented a proposal to organize the commercial debt, which they also hope to present to Milei in case he attends.
Regarding the dollar, Funes de Rioja commented: “He did not speak of the fatalism of devaluation, but rather of strengthening the currency by promoting exports. It did not seem prudent to ask that question, but rather where he wants to take the country, but it seems to me that a brutal devaluation is not in his strategy.
Call to the Government and final applause
During the meeting, in which 24 businessmen participated (the entire Executive Committee was present, except for two missing people, one for a trip and the other for health reasons), Massa called on them to form the future Government. “Business unions have to participate in policy design. They told me that they are willing,” said an official source.
Funes de Rioja revealed: “It would not be integrating the Government but rather control bodies, superintendencies, banks, we listen but we do not make a definition.”
In the meeting, which lasted more than two hours, Massa sought to polarize Milei’s economic plan: he assured that he will maintain the credit with a negative rate and that he will promote railway infrastructure. “I believe in a State that invests in railways and Milei wants to privatize, as happened in the nineties, when 80% of the matrix went to trucks. It was Menem who invented Moyano, not Kirchner,” considered a source from the economic team.
At the end of the meeting, he was applauded by the industrialists. “The final applause was because he spent 2 hours or so in the meeting,” concluded Funes de Rioja.
Source: Ambito
