04/12/2021 1:27 PM
Updated 04/12/2021 1:27 PM
This week the fight between mass consumer companies and the Government for price controls resumed.
AmCham, the chamber that groups together North American companies operating in Argentina, released a harsh statement and asked to avoid
"one last leap into the void."
In the text released today by AmCham, it reviews the risks of continuing with the current pricing policy, which includes the renewal of programs such as Maximum Prices and Care Prices and the requirement that
companies work 100% of their capacity .
Among these "risks" they list
the loss of profitability of the companies
, the impossibility of generating new jobs, the limitation in new investments and the shortage of products.
"Time is shortening, the margin for maneuver of companies and retail is scarce, the levels of economic sustainability are minimal, the arguments about the trade administration policy are
, the contradiction is manifest, the predictability is nil, and competitiveness is a chimera ", they point out.
AmCham remarks that until now there have been no layoffs and that they have had to hire outsourced personnel to supply the people who cannot work due to the pandemic.
But they warn that these outsourced positions will be discontinued after the pandemic and they wonder "
if the current level of effective personnel can be maintained for a long time
Regarding shortages, they indicate that a survey shows that there was
a growth rate of shortages of 252%
According to the study carried out by GS1, of national chains, there were breaks in May and June 2020 of 5% and in January and February 2021 of 13%.
"The lack of provision of goods at the point of sale, are consequences of
in which the company is not very responsible. We suggest, therefore, intensify the" genuine "dialogue, agreeing short and medium-term outputs agreed between all stakeholders. involved ".
"The consequences are obvious: in the face of a more hostile, restrictive, and unpredictable regulatory environment, nobody plans for the medium and long term, and therefore
the economic recovery will be limited and insufficient
In this framework, they ask the Secretary of Internal Trade to repeal resolution 100/2020 that launched Maximum Prices and that froze the values for more than a year and authorize "
staggered increases for the next few months
"The administration's resources should be concentrated on
analyzing the factors that generate this phenomenon
of price increase instead of regulating it through unenforceable sanctions and controls, and proposing new regulations.
"It is necessary to establish a channel of consensual decisions with the private sector, which avoids taking
the last leap into the void," they
More pressure on companies: the government forces them to work at 100% of their capacity
More measures to lower inflation: stepping on the dollar, more Care Prices and benefits for SMEs