Report by Liliana Franco.-
He CEO of the Techint group, Paolo Roccaassured that the national state has to “level the field“in order to promote the development of the Argentine industry. In this sense, the renowned businessman stressed that today there is a “tax overload” on the formal sector and that it is necessary to move forward in the “elimination of exchange restrictions.”
“Leveling the playing field for me means reduce tax content” Rocca explained during his speech at the 23rd edition of the ProPymes seminar. Furthermore, regarding the opening of imports and the role of the national industry, the CEO of the Techint group stated: “We have to enter into this process of transformation of Argentina wanting to be protagonists and not victims“.
Paolo Rocca asked the Government of Javier Milei to “level the playing field”
During more than an hour of talk, the CEO of the Techint group analyzed the reality of the national industry and the changes carried out by the libertarian administration. In this last point, the businessman listed what stands out as management achievements, highlighting the importance of fiscal balance and reducing inflation.
“The shrinking of the State, the elimination of a financial deficitthe reduction of inflation, the honesty or normalization of some of the key prices in the economy, the fare prices – the energy is getting closer to the rationality of reflecting its cost -, the deregulation, law basesthe elimination of many rules that ultimately slow down economic activity. For me it has been a extraordinary result that has exceeded the expectations of many,” explained Rocca.
Despite stating that “economic activity is beginning to pick up“, the businessman also made some requests to the Government. “What is missing, I believe, is an important point that the President has also highlighted, the elimination of exchange restrictions.”
The removal of the stocks is one of the most important requests that the Argentine industry makes to Milei’s management. “This is something very important for many of our companies. Ultimately they have to be able to make a small investment in Brazil, which they could not do today. This restriction to some extent also impacts“.
In another passage of the talk, Rocca stressed that for the Argentine industry and economy to have a reputation, it is necessary for the Government to “level the playing field” with the rest of the competitors. “We have a very strong tax content, higher than the rest of our competitors, 32%”, he assured.
“We believe that compared to our competitors we are very overloaded with taxes. Some of these taxes are nowhere to be found: gross income, check tax, provincial/municipal taxes, are something that creates a very important difference“, he stated.
Paolo Rocca, the Argentine industry and the opening of imports
Rocca’s order is framed amid warnings from the industrial sector about opening of imports without, precisely, “level the field“. Regarding this Government policy, the CEO of the Techint group assured that “as a value chain it is an extraordinary challenge to regain competitiveness“.
“We have to see it not as a threat, but more as an opportunity,” he said and added: “The industry wants to be part of this reset process of redefining Argentina. We want to be protagonists“.
The prominence that Rocca requested requires, in his view, efforts from both sides of the counter. “We have to reduce the price of our products, we have to ask our supplier for their efficiency, we have to enter this process of transformation of Argentina wanting to be the protagonist and not the victim of a process in which we do not have to feel strange“, he detailed the role of the national industry and, in this sense, highlighted that the Techint group invested u$1.4 billion during 2024.
“What is necessary is to level the playing field,” he repeated. “Having a level playing field that allows us to compete. I believe that this industrial system, this value chain and the entire Argentine industry – which employs 1,400,000 people and has an impact on the GDP much greater than its pure dimension due to the indirect nature of its issue – This value chain has the capacity to compete and take on that challenge. But the field has to be level.”
At this point, the businessman once again passed the ball to the state’s side: “There is a decision made by many companies. If this goes in this direction, I become an importer of products from ChinaI add less value to it and I am. Or I continue organizing and working on my value chain. This decision is very important and depends a lot on the messages and guidance that you (the Government) transmit.“, he concluded.
Source: Ambito
