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Argentine SME Manufacturers Warn EUMercosur Opening Could Shut 20% of Factories Without a Competitiveness Plan

IPA urges the Milei administration to convene an immediate working group to craft a competitiveness plan.

Overview

  • Industriales Pymes Argentinos cautioned that an EUMercosur trade opening, absent prior safeguards, would intensify the current industrial crisis.
  • The group’s Observatorio report warns of primarization of exports and an unsustainable trade deficit driven by dollar constraints.
  • IPA says European incentives to export manufactured goods and buy raw materials could trigger a sustained influx of imports that harms local jobs.
  • To mitigate risks, the association calls for financing, production incentives, and lower dollar-denominated operating costs to reach international competitiveness.
  • The warnings were directed to the national government, with no policy response reported in the coverage.