Javier Milei’s government deregulates commerce and eliminates 43 price control regulations

Javier Milei’s government deregulates commerce and eliminates 43 price control regulations

November 19, 2024 – 07:45

The annex to the resolution details the repealed regulations, which cover a wide range of provisions issued by different ministries and agencies over the years. As mentioned in the official text, in search of a more free and transparent market.

Ignacio Petunchi

The Ministry of Economy, headed by Luis Caputo, adopted a “key” measure to reform the regulatory framework in force in the country. He did it through Resolution 1212/2024 published in the Official Gazette.

In this way, the Minister of Economy repealed 43 regulations that allowed the State to set prices, intervene in markets and request unnecessary information. This regulation aims to “modernize public policies linked to domestic trade, reducing bureaucracy and eliminating obstacles that have generated inefficiency and unnecessary costs for producers and consumers,” indicates the official text.

Likewise, it highlights that the resolution, based on the file EX-2024-120081396-APN-DGDMDP#MECaligns with the Decree 70/2023 and the Law 27,742“which establish the foundations for a more dynamic and free economy.”

In this framework, regulations related to price controls, supply and administrative requirements were identified that “have not met the objectives for which they were created, resulting in excessive spending of public resources and increasing transaction costs in production chains.“.

The detail of the standard

According to the regulations, the eliminated standards They included controls on beef, dairy foods, shops and large supermarkets.. They also established regulations on communication services and pharmacies, and required requests for information from companies and educational institutions.

Furthermore, it was repealed a rule that affected the flow of commerce and raised the cost of tires. Obsolete programs that are not aligned with the simplification policies promoted by the Government were also eliminated.

These measures are added to the 107 derogations made by the Secretariat of Industry and Commerce of the Ministry of Economy since the beginning of the administration to reduce bureaucratic obstacles and promote free competition. Among the rules already eliminated to normalize Foreign Trade, are automatic and non-automatic licenses; the SIRA and the DJCP that generated costs of US$5 million and one million annual sworn statements.

Bye Care Prices and SIPRE

“In the same line, to make Internal Trade transparent, the control program was terminatedCare Prices, and the Information System for the Implementation of Economic Reactivation Policies (SIPRE), an information regime for prices and quantities, among others.

Finally, remember that the elimination of these provisions reinforces the Ministry’s objective of “moving towards a more transparent, less bureaucratic and competitive market, simplifying production processes and reducing costs for consumers.” The resolution will come into force the day after its publication in the Official Gazette.

The repealed rules

The standards listed encompass a variety of regulations that impacted “prices, bureaucracy and inactive or disused programs“. These measures are classified into the following main groups:

  • Price regulation and market control

    These regulations imposed maximum prices and controls that limited free competition:

    • Beef: Resolutions 1/2006 and 38/2008 set prices for the entire chain.
    • Dairy: Resolution 26/2007 forced dairy industries to agree on prices with the Government.
    • Newspaper: Resolution 1/2010 established equal prices.
    • Pay television: Resolution 50/2010 regulated rates with state formulas.
    • Programs such as Super Cerca (Resolution 991/2021) and Precios Justos (Resolutions 823/2022 and 1077/2022) sought to contain prices, but were considered market distorters.
    • Other price controls covered specific products, such as compensation for potatoes (Resolution 155/2007) and milk (Resolution 170/2008).
  • Obsolete programs and measures

    Numerous programs became obsolete or without practical operation:

    • Market in your Neighborhood: Resolutions 1/2016 and 32/2021, which sought to provide food at affordable prices, are no longer in force.
    • Green Productive Plan: Resolution 352/2021, a program to promote sustainable practices, was deactivated.
    • Compensation programs for small agricultural producers (Resolutions 126/2015, 175/2015 and 615/2015) and dairy farmers (Resolution 684/2014) were left without application.
    • Initiatives linked to the oil sector, such as the Oil Sector Promotion Program (Resolutions 30/2023 and 804/2023), were also eliminated.
  • Bureaucracy in approval and technical requirements

    • Tires: Resolution 25/2007 imposed additional and redundant requirements that increased costs and time on the market. Its elimination simplifies the approval process.
  • Information requirements without specific usefulness

    • Private educational institutions: Resolutions 300/2009 and 312/2010 required detailed information on labor costs and fees, but were not used for specific purposes.
    • Business chambers: Resolution 813/2021 created an observatory to analyze data, which did not translate into useful measures.
  • Technical areas deactivated

    • Technical Evaluation Unit of Productive Projects for Structural Change (UETCE): Resolutions 487/2020 and 9/2022 regulated this structure, which no longer operates.
    • Argentina Productiva 2030 Execution Unit: Resolution 236/2022, without current activity.
    • Other related agencies and manuals were also eliminated for being inefficient.
  • Other programs and regulations without validity

    • Sustainable Agropymes Program (Resolution 142/2021) and other productive incentives became obsolete.
    • Market promotion programs, such as the network of national concentrator markets (Resolution 63/2011), were dismantled as they became meaningless.

Source: Ambito

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