The president of the Argentine Confederation of Medium-sized Enterprises (CAME), Ricardo Diab, today alerted about company closures in Argentina. Among the main causes, he details the drop in consumption and the opening of imports promoted by the government of Javier Milei. According to Argentine News Agency, this trend impacts various sectors, including the food industry, traditionally considered prevalent in the country. Diab mentioned the recent closure of Whirlpool, which left 220 people unemployed, and of the dairy company La Suipachense, stating that these are not 'large companies' but are significant. Diab identified two main causes converging to create the current economic situation. Firstly, the drop in consumption 'makes it so that commerce itself does not demand products from the industry for this same reason'. In this sense, the organization proposed solutions to reactivate consumption. 'We requested other consumption incentive alternatives, regarding the long-term installment plans that at one point provided facilities in the form of stretching salaries.' However, he indicated it was not successful because the State does not intervene in private matters: 'If banks do not agree, do not accept, or the card platforms, it is very difficult to carry it out.' This is compounded by the opening of imports: 'Many companies see that they are not competitive with products that come mainly from China.' The businessman pointed out that even in sectors like food, an increase in imported products competing with national ones is observed. Although international trade is 'indispensable,' for Diab, in the economic growth of technology and raw materials, certain national sectors fail to be competitive, which 'leads to closure.' He also noted that the trend is 'growing,' to the point that entrepreneurs who did not have importation projects in their plans are now considering them. The union leader also highlighted the impact of the tax burden on the competitiveness of Argentine companies. 'We are immersed in almost a negative circle where those of us who advocate for it cannot easily carry it out,' he stated. Furthermore, the leader mentioned that although they have spoken with the Government, the current administration maintains 'a macroeconomic policy and has the concept of freedom.' 'The State today does not intervene at all in anything that has to do with the private sector,' he concluded. 'If we know that automatically any of our products has a 50% tax, we already start from a very difficult tax situation to solve,' he affirmed, comparing the situation with other countries that have lower burdens or different production styles. Regarding the labor market, Diab was blunt in stating that 'generally speaking, there is no activity that is demanding employment'.
