In it Carrasco Airport everything was smiles and joy: the flight had just landed JetSmart that came from Airpark (Buenos Aires), inaugurating the air bridge services of this “ultra low cost” airline, with two daily connections. It is a new connectivity initiative between both countries, but the case reflects something else: it seeks to break the implicit “monopoly” of Argentinian airlines on the airlift, to the extent that – until now – it was the only one authorized to travel from Aeroparque. “It’s a key milestone,” people close to the company said proudly.
Those who are closely following these issues and the bilateral relationship between Uruguay and Argentinaaffirm that in a few weeks the open skies agreement between both countries will be signed, which will imply substantial progress in connectivity. “The initiative is clearly in line with the vision of the President Milei, in terms of giving maximum freedom of business and activities, and coincides with what Uruguay has been demanding for a long time, and which is only now finding an echo,” said a senior member of the Uruguayan government close to the negotiations. JetSmart is seen as a first opening, which will surely be followed by other companies.
“So the bilateral agenda is going very well…” said the leader. And he was thoughtful. “So?” asked a friend who was accompanying him to lunch in Carrasco. “Well… Milei’s style is… how can I put it?… Particular,” he pointed out. “Notice that she has not visited any border country.”He pointed out. “Milei has become a star of the global right, but she has not visited or Chilineither Paraguayneither Bolivianeither Brazilneither Uruguay. For us it would be important to at least achieve a bilateral meeting,” he said. “But well: this is judged by the results and – the truth is – there is great agreement and, I would say, enthusiasm for the way things are developing in the relationship. After enabling the deepening of the access channel to the Port, the skies are open and there is a lot of work planned to improve the management of the binational commissions,” he remarked. For Milei, the region seems like a secondary setting, while she goes on her umpteenth trip to the United States. But for Uruguay, things are going very well.
Competence
The failures of the Commission for the Promotion and Defense of Competition (CPDC) In the cases of the refrigeration industry – it denied the purchase of 3 refrigerators Marfrig by Minerva– and regarding the purchase of Pagnify by the international Bimbo -also denied. The cases are in themselves relevant and have very direct consequences in business, for companies and each sector, due to the arguments that have been raised in each specific case. It must be remembered that Uruguay increased the CPDC’s capacity for action, based on the law approved in 2019 (second government of Tabare Vazquez) and the first decisions with the new legal framework are becoming known.
But the issue goes beyond particular cases. These days several economic consulting firms and accounting and legal studies are thoroughly analyzing the rulings, as they may be precedents for other areas and cases of mergers and acquisitions. “With these decisions by the Commission, not only is there direct action in each case, but the criteria at play are becoming clear; “They can condition businesses in other sectors.” This was explained with some concern by an accountant with significant experience in the area of corporate business. “If there is a basis for a certain decision in one sector, it is expected that the same applies to others; This – from a certain point of view – is logical; but from another angle it worries me: Uruguay It is a small economy and efficiency is often gained by gaining scale, for which it is necessary to receive capital and often acquire other companies. Yeah Uruguay emphasizes – as it is doing – on the promotion and defense of competition, but its competitiveness and productivity does not move forward, it could lead to a dead end,” he reflected.
The concern is shared by other professionals and also businessmen. “Notice that a company that is contemplating the possibility of being acquired by another, local or international, now faces greater obstacles. This can discourage investments and business initiatives,” explained an economist who is closely watching the consequences of the failures. “You have to see that in many sectors companies are created, developed and then end up being acquired by larger ones, in an almost natural process,” he explained. “In recent cases there will surely be appeals; especially in the case of Bimbo-Pagnitify, where the arguments for the denial do not seem clear to me; It is no coincidence that there was a dissenting vote,” added the expert.
cosse
The appearance of the presidential candidate for the Frente Amplio, Carolina Cosseat breakfast ADM This week, he convened an important group of businessmen. “Obviously his vision aroused a lot of interest. She has a chance of being the candidate of the largest party, although the latest polls show her behind Orsi”said a businessman who attended the event. There was a lot of expectation, but it was not completely met: “he talked little about the economy… he did talk about safety and the environment, but many executives were happy to be satisfied,” said the manager of an important service company, which bought a table.
“The truth is that they are taking great care, perhaps too much, in their speeches,” commented another businessman upon leaving. “And I’m not just talking about Cosse; I also see it with Orsi and in the rest of the games,” he added. “Well, but the programs are becoming known, right?” a colleague retorted when listening to him. “It is true, there is an effort there, especially from the ruling party candidates. In the FA I see a predominance of criticism, they think that this will be enough to have victory in November,” he commented. “Could it be?” asked his interlocutor. “Did you see the political scientist look on me?” He responded with a laugh.
Source: Ambito
