The Central Bank has implemented a measure that will allow companies to access the foreign exchange market in 30 days, instead of the previous 60 days. This aims to prevent the State from losing an estimated revenue of $500 billion due to the expiration of the PAIS tax. However, the local industry faces significant challenges.
The pact, signed in 2019 but never implemented, could be the first major initiative of Javier Milei's administration on the international stage. While the agricultural sector views this agreement positively, several industrial sectors, such as the Argentine Industrial Union (UIA), are asking for fair conditions to compete with countries that do not export taxes.
The context is also marked by the imminent end of the PAIS tax, which will cease to apply to imports starting December 24. According to business sources, the Government plans to expand the scope of this measure in the future. Furthermore, the possible closure of the agreement between Mercosur and the European Union is anticipated for the G-20 summit in November.
In light of this outlook, the Central Bank has decided to expedite access to the foreign exchange market for imports. This measure is considered key to avoiding a significant loss in tax revenue, according to former Customs head Guillermo Michel. Business owners are concerned about the opening of trade borders, which threatens the competitiveness of the most vulnerable sectors against the influx of imported products with lower costs and fewer tax burdens.
The reduction of tariffs, although beneficial to some sectors, puts national production at risk. The Government is moving forward with a trade liberalization policy that includes tariff reductions on imports and the easing of access to the foreign exchange market. It is estimated that without this reduction in timeframes, the State would forgo around $500 billion by the end of the year.
Amid these transformations, the Argentine industry is on alert. Three petrochemical plants have already closed their doors or been converted, while at least 10 textile companies are at risk.
