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There are fewer and fewer exporting companies and the government's offensive grows

2021-04-11T01:58:43.987Z

There were 13,147 in 2010. Today there are 9,066. 31% less. The Government has been harshly criticizing the agro-export sector and this Friday Secretary Paula Español threatened to close meat exports.



Gustavo Bazzan

04/10/2021 18:53

  • Clarín.com

  • Economy

Updated 04/10/2021 18:53

In recent times, three voices of Kirchnerism have been raised to

criticize the export sector

, which is supposed to provide the dollars to get Argentina out of the extra large economic crisis in which it is submerged.

The criticisms were directed in particular to the

agro-export

sector

, precisely

the one that leaves the most dollars in the coffers of the Central Bank.

This Friday, the increasingly influential Secretary of Commerce,

Paula Español

, angered by the increases in

meat

prices

,

said that to officials in that area “

the pulse of closing meat exports will not shake 

if we continue to see this type of speculative behavior ”.

Earlier, on January 14 of this year, and speaking more generally about the rise in prices, Congresswoman

Fernanda Vallejos

complained bitterly that in Argentina

"we have the curse of exporting food."

The tone of the attacks on food exporters had been set by Vice President

Cristina Kirchner herself

last December, in the remembered act held at the Unico de La Plata Stadium, when she pointed out that although the economy "is going to grow in 2021," she warned that his wish is that those benefits

do not "remain for three or four alive only."

In those days there was already talk of the good harvest and good prices for the agricultural sector, in addition to the important recovery in meat exports.

The truth is that the export sector in general has been severely punished by occasional statements but much more by reality.

A recent report by the

Center for Production Studies,

which depends on the ministry led by

Matías Kulfas

, revealed worrying numbers: “In 2020, there were 9,066 companies exporting goods,

7.9% less than in the previous year

.

The effect of the COVID-19 pandemic was the main factor.

Between the companies that were created and those that were destroyed in the different sectors of activity, there was a net of

779 fewer companies ”

.

But the loss of exporting companies has been going on for a long time

and is not explained only by the pandemic effect.

In 2010, there were 13,147 companies that managed to sell part of their production abroad.

Today they are 9,066. 

In other words, in 10 years the number of exporting firms was reduced by 31%.

For more information: most of the firms that stopped exporting

were or were SMEs

.

The main points of the report:

-

 The total number of exporting companies made external sales in 2020 for a value of US $ 54,612 million, 15.7% less than in 2019.

It was the first contraction after 4 years of moderate growth.

- In the last year, the reduction in the number of companies was mainly explained by those that export up to US $ 50,000 (-302 firms).

Since 2007, Argentina lost 5,378 companies that sell abroad.

- Except in 2017 and 2019, in the rest of the years there was a

continuous contraction of firms

.

The bulk of the drop is due to companies that

export for a small amount, a

process that accelerated with the emergence of COVID-19.

- Between 2007 and 2020, 2,969 companies that

exported up to US $ 50,000

were lost

,

which represents more than

55% of the total lost.

In 2020, industrial companies in the food, beverages and tobacco sector accounted for more than half of the value of exports (52.3%) and 20% in number of firms.

The businessman

Gustavo Grobocopatel

commented on his Twitter account about the numbers of the official report that gave an account of the debacle of exporting firms:

“Until this trend is reversed, we will not be able to stop creating poverty.

We can do anything but we cannot avoid its consequences.

What right of a worker is defended if he loses his job? "

.

Grobocopatel

has been based for some years in the Uruguayan city of Colonia

.

From there, he spoke with

Clarín

yesterday

, where he expanded his criticism of the anti-company and anti-exporter model.

“The dynamics of these times tell us that we have to worry about sustaining current companies and creating new companies.

Precisely the next world will require new companies, the data in that report is impressive.

For a decade we have been losing in the balance of exports and in the general.

Anti-export sentiment makes everything worse.

If the round-trip flow is not facilitated, we will go wrong "

- While this is happening, the Government insists that it is necessary to add value to exports from the countryside.

It sounds counterintuitive.

- They do not understand that companies do not invest in processing raw materials or in more sophisticated value chains because there are no policies that go in the same direction.

The agenda must be expansive, to attract more multinationals.

Adding value

without free trade agreements is useless, because nobody would buy what we produce from us.

Today we have a state that does not work, with an unbearable tax burden and without free trade.

The consultant

Marcelo Elizondo

, an expert in international trade, said.

"The starting point of the export decline is 2009/2010. Until then, we have enjoyed a competitive exchange rate. And that was when what had been built in the 90s began to run out. In convertibility there was a modernization of the industrial sector from the importation of capital goods that significantly reduced production costs, improved productivity and put many SMEs on the export market. To this was added, in the early years of this century, the boom in commodities and Chinese demand In 2010 we reached the export record of 84,000 million dollars. But that is where inflation, macroeconomic inconsistency and the exchange rate lag began. Then the stocks, the exchange gap and the growing fiscal pressure were added. It is impossible to grow. "

- Why were SMEs the most affected?

- Because they are more sensitive to macroeconomic disorder.

From the outside they see them as a risky supplier, which can fail at any time, something that is more difficult for a cereal company or an automotive company to do.

- What was the real effect of the pandemic?

- It was noticed, but let's see what happened globally.

Trade fell 5% in 2020, but our exports fell 16% In the Chamber of Exporters a recent report circulates where they point out that “in the last 10 years the total of large exporters and SMEs fell significantly, registering in the year 2020 almost 2,000 exporting SMEs less than in 2011 and in the case of large companies, a decrease of nearly 200 firms out of 800 in the base year ”.

Enrique Mantilla

, head of the Chamber, summarized

the vision of the sector

for

Clarín

.

"The leadership has to understand that it is necessary to have a national export strategy based on inclusive productivity and investment, which are the basis of sustainable development."

Look also

"We are advancing without restraint towards the worst past": the field criticized the threat of a possible closure of the export of meat

The government threatened to shut down meat exports if price increases continue

Source: clarin

All business articles on 2021-04-11

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