Recently, there have been some positive announcements, such as the agreements with the European Union, which are long-term with a gradual reduction in effective tariffs; and the agreement with the United States, which remains to be seen for the Argentine automotive industry. But the big problem is the tax framework,” he explained. Regarding the possibility of a factory closing, he responded: “I wouldn't be surprised if it's a path where it becomes increasingly difficult to justify investment projects. After Gross Income Tax, which to me is the most distorting and harmful thing there is, you have between six and seven points, and it not only affects the ability of a Ford factory in Argentina to export, but it also prevents you from localizing auto parts or having a longer chain of national suppliers. You have between three and five points in national taxes, check tax or debits and credits, and something that is still there and that we are working with the Government on regarding export withholdings. I wouldn't be surprised if this is a path, because you are competing in a global market where you compete against producers who not only do not have this type of burden, but also have state policies that encourage the production and export of cars. I wouldn't be surprised if car factories in Argentina close.” In statements to Infobae, Galdeano said that the country competes against “all the terminals, but we also compete against our own factories in other countries to export to different places.” “Pacheco has between twelve and fifteen points in taxes to export today. Buenos Aires, January 15 (NA) – Martín Galdeano, president of Ford Argentina, questioned the country's competitiveness problems due to tax pressure, and even said that he would not be surprised if some local terminal closes due to this problem. “The limitations for us today are two: one is the tax framework and the other is how Argentina integrates into the world, and there we are progressing well. And municipal, I would say you have between two and three points,” he detailed. #AgencyNA
