“If it is not corrected, in three months we will face a situation of companies with many problems, layoffs and more unemployment. There will be no demand. And prices are going to go down at the cost of hunger and poverty. People will not have money to consume. It’s a domino effect and it’s going to hit everyone.“, he explained to Ambit Daniel Rosatoowner of Industriales Pymes Argentinos (IPA).
In that sense, he pointed out that the labor reforms included in the DNU “do not make sense, they are harmless.” “A labor reform may be necessary but, if there is going to be unemployment, I can’t hire workers, what’s the point. Labor reform has been requested, but we do not know what the reform is. They do not allow us to discuss or reach a consensus on SMEs,” Rosato highlighted.
Some of the laws repealed by the DNU were of vital importance for many SMEs. “The National Buy was something integrative, it is not right that it be repealed. Neither did the Gondola Law: it allowed many SMEs to sell in supermarkets, so that the consumer can choose price and quality. It is a mistake to remove it. It served for the consumer and for SMEs,” he stated.
The head of the IPA also questioned the possibility of an indiscriminate opening of imports: “It has to be regulated so that there is antidumping control, because on other occasions products came below cost and it makes it impossible to compete. And in this way, companies were destroyed, especially in the textile, footwear and capital goods sectors.”
Meanwhile, Rosato maintained that “Today it cannot be exported and the complaint it made to the previous government for appropriating other people’s dollars “He is putting it into practice in his government, when exporting generates much less foreign currency than paying for imports, with the seriousness that there are no purchases from abroad, because nobody wants to finance a country in emergency.”
Price concerns
“There is great concern,” he summarized for his part Marcelo Fernandez, president of CGERA, who highlighted the importance of sustaining the Industrial Promotion Law. He also referred to the customs code: “Customs for SMEs is an essential body, it is the one who controls prices so that there are no abuses. If these controls were lifted, it would be very detrimental to SMEs.”
“We are concerned about prices. Monopoly companies will be able to do whatever they want. SMEs and consumers are vulnerable, we have no one to defend us. We need the State,” highlighted Fernández, who also pointed out that social discontent could be channeled into protests that, in turn, will have an impact on production.
“I hope that we can talk to the new authorities. Being able to discuss some of the measures that we believe may be harmful,” said Fernández, who concluded: “If we are received, bring concerns to them. We want to sustain activity and production. Have a dialogue with the Government, because it is who we must turn to. The idea is that the urgent matter is resolved. But not everything is fiscal, with more production and work we can help alleviate the crisis and help the Government do better. Not only by reducing spending, but by collecting more, the fiscal deficit can be reduced.”
Source: Ambito
