CADIEEL remarked in a report that the country has a productivity that exceeds the average of the region, but that it is “trapped” by the lack of competitiveness.
The Argentine Chamber of Electronic, Electromechanical and Lighting Industries (CADIEEL)rhighlighted in a report that the country has a productivity that exceeds the average of the region, but that it is “trapped” by the lack of competitiveness. The businessmen highlighted a series of obstacles encompassed as “the Argentine cost.”
First of all, they pointed out to the lack of financing as a “recurring problem that mainly affects SMEs that need investment to grow and expand”, a consequence of macroeconomic instability that also limits the ability of companies to plan in the long term.
In parallel, they highlighted the high tax pressure. “There is a tax burden that is around 52%, the effort that industries make to be competitive is diluted in the face of a tangle of taxes, rates, contributions, contributions, advances and withholdings. Companies also face a series of additional costs that complicate its operation even more so, such as provincial taxes (IIBB), municipal taxes, insurance, bureaucratic procedures and a growing labor litigation that represents an additional brake on competitiveness,” they went into depth from the chamber.
On the other hand, for CADIEEL the logistics It is also an obstacle to competitiveness, since “it represents a cost 43% higher than the Latin American average” due to “the lack of adequate infrastructure and the low priority that has been given to the development of trains, a more economical means than the truck. “. “Added to this is that carrying out import and export operations is more expensive than in other countries: it is estimated that it is 3 times more expensive in export and up to 13 times more expensive in import,” they added.
Given this panorama, the president of CADIEEL, Jose Tamboreneaassured that even so the industry has a future because there is “a solid foundation on which to build” although he warned that “If urgent measures are not taken to improve economic conditions and level the playing field, the country risks losing the engine of growth that the national industry represents.”.
“Export and import rates are critical factors that directly impact the competitiveness of our industries. A balanced fiscal framework is essential to encourage investment and growth. We must create an environment that promotes our exportsallowing Argentine companies to reach new markets and contribute to the economic development of the country,” Tamborenea added.
Source: Ambito
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