US companies in Argentina warned this Tuesday that the South American country is on the “brink” of a new economic crisis and questioned that “it is impossible” to plan in the long term, at a business meeting of the United States Chamber of Commerce in Argentina (AmCham).
“Unfortunately, Argentina has been in constant decline for many decades now” and “clearly this decline has accelerated over time,” AmCham president Facundo Gómez Minujín said in a speech at the meeting that took place in a hotel in exclusive neighborhood of Puerto Madero in Buenos Aires.
The also president of the JPMorgan bank added that Argentina will live this year “inflation with recession“.
By adding the unprecedented drought, the lack of foreign currency to import, the fully regulated exchange market, the so-called exchange stocks “which have already shown to be unsuccessful”, managed trade and the drop-in of industrial inputs, he indicated that these factors “They bring the country to the brink of a crisis, the tenth since the return of democracy” in 1983.
We continue without finding solutions to the structural problems that our country has, such as poverty, recurring economic crises, extremely high inflation, income inequality, loss of social mobility and educational quality.
The consequence is that “it is impossible to plan in the long term when we do not have visibility in the very short term,” because “we are navigating in a fog bank,” warned Minujín, something that “does not happen in neighboring countries.”
Minujín recalled that this year is a “hinge” in Argentina because the presidential electionwhich he described as an “opportunity” and stressed: “Only, only, if we achieve a notable change in the economic organization of the country, we will be able to reverse the downward trend in which we are immersed.”
Argentina suffers high inflationfrom 104.3% year-on-year last March, poverty affects 39.2% of the urban population and expectations point to a drop in gross domestic product of 3% this year.
On another panel, the Argentine ambassador to the United StatesJorge Argüello asked that the northern country adopt the necessary tools to improve bilateral trade.
Arguello warned that “the so-called trade remedies do not cease”, which he listed as antidumping measures or national security criteria “that do not cease” and that in Argentina they account for 25% of exports to the United States and the affected sectors are biodiesel, honey , seamless pipes, grape juice, lemon juice.
The Argentine ambassador also responded to those who express concern or claims about the landing of China to Latin Americathat Argentina needs “concrete initiatives on the part of the United States Government”, that they “stop restricting trade” between the two countries and “that promote investments” in Argentina.
The United States ambassador to Argentina, Marc Stanley, had said that “while Argentina faces economic challenges“There is a lack of food and fuel in the world and that Argentina “can collaborate” with the United States and other countries to provide this food and fuel to the world.
The United States is Argentina’s third largest trading partner, after Brazil and China, and is the main investor in the South American country.
Before journalists who consulted about the current negotiation between Argentina and the International Monetary Fund (IMF), Argüello responded that “there are good signs” from the United States Government and the organization’s technical team.
The country wants the agency to take into account the impact of the drought in meeting the goals and advance disbursements of the program that refinanced debts for 45 billion dollars.
“Argentina seeks facilities for compliance with the terms agreed with the IMF,” said Argüello.
Reference-aristeguinoticias.com
