The Association of Automotive Manufacturers (ADEFA)the entity that groups the automotive terminals located in the country, supported through a statement the measures announced by the Ministry of Economyreferring to the import of steel and the systematization and digitalization of the regime of Replenishment of stocks (Repostock)“They are positive and go in the right direction to improve the competitiveness and international insertion capacity of the sector,” the entity said.
“The publication of these measures is very positive and undoubtedly forms part of the results of a sustained joint effort between the private sector and the Government for the development and strengthening of our industry,” he said. Martín Zuppi, president of ADEFA.
Through a statement, the Ministry of Industry and Commerce The agency in charge of the steel industry reported that the modification of the technical regulation (RT) of steel “is intended to simplify and lower the import costs” of this product, which, according to the agency, “is up to 50% more expensive in Argentina than the world average.” “With this decision, 31% of steel imports will no longer have customs intervention and there will be greater supply, which will result in more competition and lower prices,” said the agency in charge of the Pablo Levigne.
The government agency also announced the simplification of the Restocka system that allows the replenishment of the stock of imported inputs that have been used in industrial exports. “Through a presidential decree, the National Government will advance in the digitalization and transformation of this system that was obsolete,” said the Ministry of Economy department. The benefit allows the re-importation of goods used in a previous export without taxes, which enables Argentine products to be more competitive in the international market. In this way, from now on, companies from any industry that import inputs for export will be able to access this benefit.
ADEFA endorsement
“The elimination of the exception procedure for importing steel is another step towards the debureaucratization and simplification of procedures that result in a reduction in time and resources,” said the statement, adding: “On the other hand, the digitalization of Repostock translates into a substantial advance in the time of the administrative process and will allow many more auto parts manufacturers and terminals to use the system due to the reduction in the time of the procedures and the optimization of resources that ultimately contribute to the improvement of costs and the much-needed export competitiveness of the automotive sector.”
It is not the first time that in ADEFA highlights the good harmony with the Government of Javier Milei. In April, he had already welcomed the announcement of the digitalisation of Repostock and the exemption of export duties for incremental exports that had been in force since 2021.
Along these lines, this Wednesday, during his participation in Ámbito Debate, Fernando Rodríguez Canedo, Executive Director of ADEFA, said: “We are working well with the new government, to which we have proposed a short, long and medium-term agenda.”
The demand for competitiveness and lower taxes
On the other hand, Rodríguez Canedo highlighted that Argentina “is much more backward” than other countries such as Brazil and Mexico. “I don’t know if the RIGI will compensate, but it will be a long-term public policy that will allow the terminals to sit down with their parent companies to discuss the possibility of investing in Argentina. The sector would qualify in technology, which gives you the signal of government support. We expect that investments can be announced in the coming months,” said the Executive Director of ADEFA.
He also admitted that each vehicle “has a very high tax burden, 25% of the exported price is taxes” and explained: “A car that is not subject to the internal tax has a 64% tax burden, and if it is affected by the first section, it goes up to 80%, and for high-end cars, the tax burden can reach 120%.” For all this, he stated: “It is unviable, especially in a world where most countries have agreements between themselves and new players are beginning to appear, such as China”.
“If Argentina does not manage to become competitive quickly, we will lose those markets to which we export and that could put the industry at risk. The issue of competitiveness is the most critical and strategic point for the industry,” Rodríguez Canedo claimed, although he clarified: “We also understand the limitations of the government, which in eight months took a lot of concrete measures in that direction, such as the decree so that exports that exceed a minimum do not pay withholdings.”
“The picture is not good, but we have clear signals and the outlook is positive in the sense that taxes will continue to be lowered and we will return to the levels we once had. Today we are halfway through the use of installed capacity, We have a lot of potential for growth,” he enthused.
The automotive industry is made up of 13 terminals and more than 600 auto parts manufacturers, employs some 600 thousand people directly and indirectly and exports on average 60% of its production, which in 2023 translated into 9.233 billion dollars, 14% of the country’s total exports, positioning it as the leading industrial exporting sector to the world and to Brazil.
Source: Ambito
