On the occasion of attending the preparatory meetings for the G20 meeting organized this year by Brazil, John Denton, the secretary general of the International Chamber of Commerce (ICC), which -at the local level- operates under the structure of the Argentine Chamber of Commerce (CAC).
The global organization - which today is led by the Australian-born executive - was founded more than 100 years ago and represents -
in 170 countries - the private sector, helping it in the development of an agenda of common interests between companies,
the promotion of free trade and investment, interceding with governments and international organizations.
During his visit to Argentina, the manager held various meetings with the new officials of the new Government of Javier Milei with whom he used the tools that the ICC has to oil international business.
One of those meetings was
with Foreign Minister Diana Mondino
to whom she expressed “the great
expectations generated by the reforms promoted in the country to improve the business environment.”
Another of the meetings that the ICC director had was
with the Secretary of Agriculture Fernando Vilella,
to whom he proposed the idea of working on linking Argentina with the large business communities, especially the international platforms.
Especially because the ICC maintains
an agribusiness hub,
in which companies and international organizations linked to agriculture are linked.
Last Friday, in one of the CAC rooms, with an excellent view of the river, and accompanied by Marcelo Elizondo, president of ICC Argentina,
Denton spoke with Clarín
.
The manager gave his vision on how global trade is evolving, on the opportunities that he sees in Latin America and in particular, on the possibilities that are opening up in Argentina from the new government management.
When asked about his vision of global trade today, the manager points out that it will be driven by
the expected growth of the global economy of 3% “despite the barriers that countries are putting up,”
he says
.
It refers to “the
3,000 restrictions in force in international trade
.”
"We see a great growth in these protectionist measures that are preventing trade from growing more," he said. In any case, although it improved, Trade
is below average after the pandemic.
According to Denton, “the predictions that globalization was going to disappear did not occur, they were unfounded.
What is happening now is a “
reglobalization”
.
Value chains contributed so efficiently to having a productive link that they are very difficult to replace, he explains.
“Despite the fact that politics created obstacles, the value chains continue to function, what can be observed is a shortening of these value chains.
That is to say, perhaps, what was previously bought further away, today is bought closer and thus those who operate reduce the risks."
Regarding
how he sees the impact on international trade from China's economic slowdown
, the expert points out: “When it was closed due to Covid, the China crisis brought a collapse in consumption in that country and
led to a slowdown in trade. international, especially for Latin America.
In any case, he is a very important economic leader, he greatly influences international trade and after the opening it is becoming more dynamic.
All in all, Denton explains, “the ICC encourages diversification, being familiar with other markets as well.”
Regarding
the opportunities that Latin America has in Commerce
, the manager begins by giving some information: “
less than 2% of small and medium-sized companies in the region trade across borders
,” he says.
Therefore, consider that there are a lot of opportunities to increase transactions and make business easier.
According to his vision, the way is to “simplify the operations of SMEs, work on financing, regulations, customs and trade facilitation so that companies increase their capacity to trade,” he says.
And he adds: “another issue is
that Latin America is more attractive for investors.
How can you do?
“Improving standards, respect for rights and sowing stability for investments.
So, there will be opportunities and I am here to help with this," he says. Furthermore, unlike Brazil, according to Denton, Argentina has an advantage which is the language, which is common among many countries in the region and facilitates links.
In relation to the weight of Argentine representation in the ICC, Denton points out that “
Argentina is a very important player, it has great influence in the formation of policies
.”
“From ICC Argentina we coordinate for all of Latin America,” he summarizes.
Elizondo adds that “in the country there is an entrepreneurship center designed for entrepreneurs to network with their peers worldwide.
In addition to the agribusiness hub that is global but is promoted from Buenos Aires to the world.”
Regarding the new Argentine Government, Denton believes that the opening of the economy portends good opportunities for business.
In his opinion, “any policy that makes business easier is well directed, although
sometimes the deregulation process is very complicated
.”
But if it is successful it will not only be good for business but for everyone's lives.
The expectation is to change the economic model so that it is more prosperous”
Do you have any
recommendations for Argentina
?
“Opening the economy is the first step.
This allows us to participate in global trade chains and is very positive.
The approach to the OECD is very important, it will give global investors much more confidence,” summarized the expert.