Alert among northern industrialists due to the Government’s policy of opening imports

Alert among northern industrialists due to the Government’s policy of opening imports

December 31, 2024 – 00:00

Carlos Muia, president of the UICA, spoke with Ámbito and warned that “if Brazil enters a recession, as economists predict, they will invade us and the damage to the local industry will be very serious.” “The problem is the fall of the dollar.” , which the Government stepped on, which leaves us helpless,” he said.

The year closes with more doubts than certainties about 2025 for the president of the Industrial Union of Catamarca (UICA), the textile businessman Carlos Muia, who maintains a critical view of the open import model of the administration of President Javier Milei. “I see that there is no policy that defends Argentine labor, we do not say that there should not be imports but there must be quotas. We maintain that 30% of what is produced in the country can be imported, be it thermoses, bicycles, clothing , shoes or refrigerators, because when you matter more than that, what you do is destroy the local industry,” he stated in dialogue with Scope.

To this yellow alert, Muia added the pressure exerted on the Argentine economy by the scenario of devaluation of its currency that Brazil is experiencing. “In 2025 we will have to reinvent ourselves. In Tucumán we are with the Santista company, which has 900 employees and produces two million meters of fabric per month and The problem is the fall of the dollar, which the Government stepped on, which leaves us helpless against Brazil, with its devaluation of almost 25 points. If it makes the adjustment that it must make to put the treasury in order, Brazilian economists say that starting in May or June that country would enter a recession. And if that happens, they are going to invade us and the damage to the local industry will be very serious,” he predicted.

Muia founded the textile company Confeca in Catamarca in 1982; In La Rioja it acquired Confecciones Riojanas, a plant that was closed in 2019 and is currently called Confelar, and in Tucumán it has been the main shareholder of Santista Argentina, exGrafa, since 2021, and recovered the emblematic Ombú and Grafa brands. This last plant, located in Famaillá, is the largest producer of jeans fabrics in the national market and produces 80% of the work clothes used in the country.

What about sales

Asked about the sales, considering the context, he did not hesitate to point out that “The sector has high stocks of unsold merchandise and some firms are experiencing liquidity problems to meet their commitments. Even though we have double the salary cost of Brazil, our workers do not make ends meet and this causes the paradox that while we are not competitive in our own region, our workers do not have enough for the basic and elemental needs.” “Hopefully the current economic program will generate the activity we need so that our industries can return to working full time and we will not have to fall into suspensions,” he said. According to data from the entity he presides, sales in the sector are close to a level. 30% below the scenario it should have.

In relation to the link between the UICA and the government of Catamarca, he described it as a “very good dialogue”, both with the governor Raul Jalil as with mayors. “The province has its numbers in order and took a big step with the return of Yacimientos Mineros Agua de Dionisio (YMAD) to the provincial State. I am only concerned that there is a good audit of those funds. The management of public funds for us is an essential issue,” he pointed out to this medium.

Embed – Unión Industrial de Catamarca on Instagram: “The New Year’s Eve dinner was a success. Sharing moments with friends from the industry is essential to strengthen relationships and foster future collaborations. Without industry, there is no nation. Unión Industrial de Catamarca”

In September, the UICA presented Governor Jalil with a report with alarming data on the imbalances that exist between the north and the rest of the country. And based on this statistical map, industrialists proposed a national law for the Industrial Development of the NOA-NEA. It was a work commissioned by the Industrial Unions of Northern Argentina (UNINOR) that includes statistical maps of comparative indicators of the regions, prepared by the Litvin y Asociados Study, which contains demographic, social, industrial and economic data.

Source: Ambito

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