Effect of CHEESE: The sector detailed the impact of imports on prices and productivity

Trade data shows that the volume of imports from Argentina continues to fall, and the alert level in various sectors is rising, as the conditions for bringing in inputs from abroad have been tightened and the management system (SIRA) has come into effect.

Among them is the maritime industry, where the percentage of inputs and parts most important for production under the non-automatic license regime rose from 35% to 76% of the totalfrom the transition from SIMI to SIRA.

With signs of recovery, From 2016 to date, the industry has exported nearly USD 130 millionbut The import of ships exceeded 730 million US dollarsdescribes the report prepared by FINA.

After the impact of the pandemic, the shipbuilding industry it grew at an average annual rate of 25%, exceeding the level of 2019 by 5%, however, in the latter part of 2022, the lack of dollars in this industry began to be felt which creates 4,500 direct jobs.

Sunday Contessahead of the Maritime Industry Association, explained that the delays in exit from permits and in currency transfer it is “slowing down the construction of ships and the process of rebuilding the fishing fleet, which this Government strongly promoted”.

recovery in jeopardy

One of the best results of this recovery period, the sector agrees, is the achievement of rreduce the average age of the fleet from 39 to 35 yearsmostly from between 2020 and 2021, several shipyards signed important contracts for the construction of ships for fishing activity.

At the same time, big maritime-party chain; it started substitute input import; staff recruitment increased by 30% and investments are encouraged both in infrastructure and in the procurement of machinery and the construction of new industrial facilities in shipyards and maritime workshops.

The FINA report is categorical in relation to the impact of this sector on import substitution and points out that the national fishing boat already reaches 68% of the local contentwhich means a foreign currency savings of 2 million dollars compared to an imported fishing boat with an estimated value of US$3 million.

In case of barges local content exceeds 90%to which should be added the effect on the network of suppliers of shipyards distributed in 6 provinces of the country not counting the two national ones, Tandanor and Santiago.

The sector began to lose productivity, especially after last quarter of 2022, with barriers to the entry of basic imported inputssuch as marine sheets, stainless steel profiles and laminates, aluminum products (naval alloys), fireproof panels for marine use, combustion engines, gearboxes, variable pitch propellers and bow thrusters, navigation and telecommunications instruments.

“If a reseller doesn’t know at which dollar they will be able to exchange an imported product, they end up pricing it as blue or MEP,” explained Contessi, referring to the case of basic inputs, such as steel or marine aluminum, which “are available in the country until four times more expensive but what they leave in the world”.

official pushing

In this scenario, this Thursday, the Secretary of Industry and Productive Development, José Ignacio de Mendiguren, led a meeting at the SPI shipyard, in Mar del Plata, where he announced public financing to strengthen the maritime sector and started a new call for National Supplier Development Program (PRODEPRO) to companies in the maritime industry.

“Having a maritime industry contributes to national sovereignty. It is a political decision and we ratify it with these announcements,” Mendiguren said, and while he did not mention the problem of imports that the sector was bringing to the public, he said that “from macroeconomic problems will growand we know that we are on the threshold of a truly brilliant phase for Argentina in which we have the opportunity to make the final leap in development.”

From the private sector, they recognize that the program which covers up to 75% of the vessel’s value, with a subsidized rate of 52% during the first 36 months and a repayment period of 10 yearsit is a necessary tool to compete abroad, however, they provide it under current conditions “credit is not a solution”.

“It’s an emergency unlock import because the industry has dollarized on parallel value and there is no more margin for sacrifice,” he said Chronicler a businessman who does not manufacture fishing boats.

Under this financing line, 28 certificates of eligibility have already been awarded and the first ship built with the line was launched in October 2022 at the Federico Contessi and SACIFIA shipyard. Also, another fishing boat is under construction at SPI.