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For hard Kirchnerism, food exports are a 'curse' and a 'disgrace' for Argentina

2021-01-13T23:49:42.168Z


Congresswoman Fernanda Vallejos and her particular vision of Argentina's main source of foreign exchange.


01/13/2021 8:36 PM

  • Clarín.com

  • Economy

Updated 01/13/2021 8:36 PM

Argentina is perhaps one of the

most competitive

countries

in

the world in food production, or at least in certain foods.

Since already in

basic products of the agricultural sector

.

And from that quality it derives that the

main source of foreign currency in the country

comes from the countryside.

Today the Government observes as a blessing that soybeans are sold at 520 dollars a ton, for example.

However, in

hard Kirchnerism

there are those who argue that what was said in the previous paragraph is a disgrace.

This is what

Fernanda Vallejos

, economist and national deputy for the Frente de Todos,

thinks

.

A "disgrace" and a "curse," Vallejos complains.

The deputy argues that such disqualification is due to the impact that movements in the international prices of these products have at the local level.

“We have the curse of exporting food, so that

domestic prices are stressed

by international dynamics.

It is imperative to decouple international and domestic prices, since domestic prices must be governed by the purchasing power (in pesos) of Argentines, ”Vallejos said on his Twitter account.

Vallejos explored the explanation that became flesh in many official referents.

The "tension" of prices, since it does not want to name the word inflation - since today it is official - comes from commodities, and not from the fiscal deficit, the monetary issue to finance it, etc.

Nor did he mention that another major food exporter,

Brazil, long ago banished inflation.

Vallejos continued.

"Argentina has a misfortune, which is sometimes thought to be a blessing", in relation to the possibility of exporting food.

He acknowledged that "at some point it is, because in crisis situations like the ones we live in, where international trade collapses, badly or badly the demand for food is always maintained, it is the last thing any society abandons, the last thing left behind. is to eat.

There is always demand for the products that Argentina sells to the rest of the world, "he added.

“The curse of all this is that the prices of the essential products that we Argentines have to consume end up highly stressed by the dynamics of what is happening with international trade.

There are a series of measures to be adopted to

decouple the evolution of international prices from domestic prices ”

.

The latter, considered the deputy, "must be governed by the purchasing power of Argentines."

Vallejos explained that "if wages are in pesos, food prices within Argentina have to be governed by what happens with income in pesos."

He also recognized that the rise in international prices "may benefit Argentina at some point, since they are essential for the country's development.

Vallejos' statements came in the midst of the government's backlash in the decision to ban corn exports, issued on December 31 as a way to ensure the supply of the domestic market and avoid price increases.

After strong complaints from the agricultural sector, which even led to a marketing halt promoted by the Liaison Board, the Government finally abandoned the export ban yesterday.

He negotiated with the corn value chain to replace export restrictions with a monitoring of the exportable balance in the sector.

Look also

After lifting the stocks of corn, the Government points to the Liaison Table for the strike: "There was manifest violence"

The Liaison Board affirms that "the objective of the strike has been achieved" and asks to speak with Alberto Fernández

Source: clarin

All business articles on 2021-01-13

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