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Free imported foods: one by one, shelf prices in the US versus those in Argentina

2024-03-13T18:35:34.496Z

Highlights: Argentina to allow imports of food, but only if they are paid in installments. The aim is to lower the prices of food imported to the country. Food prices in Argentina are higher than in the U.S. and other countries. The government says the move will lower food prices for all Argentines, not just the rich and well-to-do. It is not yet known what the final value will be to the public once they land in Argentina, and only some have answers.


Some products are cheaper abroad than in Argentina and in others the opposite happens. The Government wants to use the tool of imports to lower prices here.


Technically, they did not “free” the importation of food, which is already free.

The shackle

was

the lack of dollars to fill the containers and bring them to Argentina.

So, the Government did announce that it facilitated the freedom for them to arrive in the country.

The strategy is that doing so will

activate competition with the national ones

, which they estimate will lead to a brake on food prices on the shelves.

When it comes to food - because the advertisement was also for shampoo or diapers - it includes some of the basic basket, as it turned out, "whose price in the local market is higher than the international price."

In the midst of complaints of “unequal treatment” by the national industry and high expectations on the part of supermarkets, at this time the Ministry of Commerce will finish defining the “changuito” of the imported ones that will have this

easy pass

, which consists of lowering the payment terms to 30 days (just one, not in installments) to buy them abroad and suspending the collection of VAT and Profits on receipt of those goods.

Meanwhile, comparisons began among consumers regarding how much people pay today

here and “abroad”

for various products.

In the comparison, the local gondolas win and lose against those of the United States.

Photo: Maxi Failla

Mahatma brand rice at Walmart in the United States, which is sold in 2 pounds or more, which is approximately equivalent to a kilo,

is

$

2.82

.

Boxed rice, national brand, per kilo in Argentina does not go below

$3,750

.

The 1 kilo

tray of pork

(the

center cut

or “chops”, one of the best-selling cuts) is

$9.34

.

Here the tray of pork shoulder in supermarkets is

$3,729 per kilo

.

Bananas

there

are

$2.02 , and in

the

national territory the popular cavendish is

$1,799

.

Russet

potatoes

- the most popular for making home made fries - are worth about

$3.27 per 2 kilos

.

The black potatoes here start at

$599

for that amount, the white ones cost from $1,250 and the Andean ones go, non-stop, to

$9,831.66

per kilo.

Bumble bee tuna

is available in supermarkets in the United States for

$1.58

, and in Argentina adding a can to the cart, a national brand, means spending no less than

$

3,785

.

The can of

coffee

starts, on average, at

10 dollars

.

In our country, 100 grams, in a glass jar, of an intermediate quality coffee cannot be found for less than

$13,015

.

Beyond these blind comparisons, because it is not yet known what the products will be or what the final value will be to the public once they land in Argentina, other questions arise, and only some have answers.

What is the new strategy for the

same

foods (in reference to basic necessities), but imported, to lower the price of those made

here

?

Who, with what dollars and with what discounts, will import these products?

The Minister of Economy, Luis Caputo, gave a preview on Tuesday during his visit to the Amcham Summit, the business event organized by US companies in the country.

“The producers acknowledged (in a meeting, days ago) that they had

'priced'

their products imagining a chaotic scenario (after the elections), and it did not happen.

They know that their products are totally outdated, and their response was:

'We are going to lower them

. '

Now, in the meantime, there are prices, and some are due to (foods) in the basic basket, which honestly cannot be there,” said Caputo, who also got involved with the promotions of the large supermarket chains.

“Imagine someone

scraping through

the end of the month, and someone is telling them that this model is better than another, so we take out Fair Prices, we take out the Supply Law, the Gondola Law, and suddenly they go to the supermarket and things go wrong. 50% more than in the United States.

They say '

This is the model?

It can't be good

.'

Business responsibility is on both sides," she explained.

"Do we want a country to change? Are we not used to lowering prices? Well, we are not even asking for a

drop

, but rather that they leave, more or less, the price at which they sell: if we sell 2x1 or '80% discount on the second unit', means that the first unit can be sold at a much more reasonable price," he explained.

The technical aspect of the announcement so far is that the Central Bank is making things easier for importers because

it will reduce the payment period for some food and beverages

, cleaning, care and personal hygiene products: they will go from a payment scheme in 4 installments to 30, 60, 90 and 120 days with a payment term in a single installment after 30 days.

The less technical but closer thing is that Caputo defined it as a "little push" against inflation.

“We have to give a little push so that the chains can also have

negotiating power with the producers

and tell them: '

no, stop, if you bring me these higher list prices, take them.'

I matter

'.

It is a way to force competition and protect the consumer.

I really think that at this moment, it deserves it.

“We all know that people are making an effort, and if prices do not reflect a more reasonable level, it is not good,” he said.

The objective, he insisted, “is to give a little push so that prices not only stop rising but also start falling.”

The preview of the announcement and advance complaints

In the meeting that the minister had held the previous day with the heads of the six main supermarket chains, Caputo had highlighted that "it cannot be that here

a lactal bread costs four dollars

or that

a toothpaste costs seven euros

(more than in Spain). )”.

Regarding the

toothpaste

, strictly speaking, here it is available for less than 7 euros.

But only if we talk about the cheapest one from Colgate, for about $1,750.

The intermediate does not go below $7,357

.

White milk bread

,

always from top brands, is here from

$3,620

, and there are options from

$2,000

, without seeds and from much less well-known companies.

Supermarkets will now evaluate

whether it is advisable

to buy imported food or not.

Before that, the Argentine Industrial Union (UIA) already reacted.

"While national producers must pay in 4 monthly installments and with PAIS tax for the inputs necessary for manufacturing, importers of finished goods will be exempt from taxes and will have full access to the necessary foreign currency in a single payment in 30 days," says the statement from the factory.

And he adds: “The announcement made today (on Tuesday) seriously affects the competitiveness of companies that operate, produce and employ in the country.”

P.S.

Source: clarin

All life articles on 2024-03-13

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