The objective of this work is to pave the way for Argentina to reach the maximum potential of production, exports and employment, indicators that had just registered a sharp drop between 2018 and 2020. Only in 2021 did they exhibit a heterogeneous recovery between sectors and regions. Nevertheless, are still far from their all-time highs, according to the study.
Specifically, the industrial entities outline a scenario in which it is possible to overcome the setbacks posed by the “pendular” economy. For this, they project that industrial activity will grow by 27%, in order to recover the maximum per capita. They also aim to generate 268,000 jobs to reach the ratio of 30.1 jobs per thousand inhabitants. They also seek that industrial exports increase at least by $14.2 billionto return to the maximum per capita of $950as detailed in the “White Paper”.
Meanwhile, for the President of the UIPBA and Treasurer of the UIA, Martin RappalliniThe document “reflects the situation of our sector and the opportunities for improvement with applicable, viable, concrete and possible proposals and measures if we work in an articulated manner, fundamentally, with the public sector and workers”.
The importance of Buenos Aires in federal development
The document also stresses the importance of a comprehensive industrial policy. As foreseen in its text, the sustained recovery process will require the development of a variety of sectors throughout the country.
It is that in different regions there are resources with the potential to grow and generate foreign exchange, both through additional exports and the attraction of local and foreign investment. For instance, they highlight Vaca Muerta, agribusiness and offshore hydrocarbon exploration, among other. That is why the weight of the province of Buenos Aires in the economic balance plays a preponderant role, since it contributes about 35% of the Gross Domestic Product.
In the comprehensive plan, the work of the UIPBA indicated that the province will promote its potential by investing in Transport and logistics. As for example with the promotion of multimodality through the rail branch efficient double lane Buenos Aires-Rosario-Córdoba, or with the expansion of highways RN 3 (Buenos Aires – Pto. Bahía Blanca – Patagonia), 5 (Buenos Aires and La Pampa, route to VM), 7 (Buenos Aires, Sta. Fe, Córdoba, San Luis and Mendoza) and 33 (Buenos Aires and Santa Fe)
In the same sense, it was proposed to advance legislatively with the updating of the industrial promotion regime, which is currently in force but not operational. And in tax matters, a central issue for the provincial agenda of the UIPBA, it was indicated that it is essential to adopt best practices in the collection of gross income (ISIB) to “reduce the excessive generation of credit balances”. In particular, it was aimed to eliminate the extraordinary increase of ISIB to port activities for companies that operate in PBA ports.
According to this work, coordinated State policies at different levels should be included within this approach. They will have to be aimed at improving the productive structure, contemplating in an articulated manner the productive aspects of the sectoral and regional order, technological development and national competitiveness.
In agreement, Rappallini comments: “The recovery and growth of our sector must be accompanied by a federal development that allows increasing the productivity and competitiveness of each provincial productive network”. And he adds: “Even so, thinking about the future, it is important to highlight the importance of developing sectoral promotion policies”, according to the president of the UIPBA.
What does the UIA propose in the White Paper for industrialists?
Based on sectoral initiatives, the plan drawn up by the UIA presents proposals that point in three directions. Broadly speaking, the first of them is focused on four priority axes: encourage industrial investment, generate formal employment, promote the development of SMEs and promote exports.
While the second direction is projected towards federal development, while the third provides measures aimed at making a leap in productivity and competitiveness. In particular, within the line of action that seeks to improve SME development, the proposal for a law that simplifies the tax system of these companies, optimizes their access to financing, consolidates their digital transformation and facilitates the creation of new ventures stands out.
The president of the UIPBA considers that “the axes presented are of vital importance”especially this last one: “The need for a SME Law that allows the development and growth of industries throughout the country through a clear regulatory framework, with measures that promote investment, job creation and increased exports”as stated.
With that horizon, Rappallini defines: “A proposal like the one in this living and dynamic document constitutes a contribution to provide predictability to industrialists, to establish conditions that allow investment, the development of value-added products and the application of macroeconomic and productive policies for the development of a project. long-term productive.
And he concludes: “It is fundamentally a tool designed so that between the public sector, the private sector and the workers we can put an end to the pendular system of our country.”