The British newspaper Financial Times echoed the repercussions of the tender to manufacture the pipes for the gas pipeline of the SouthernEnergy consortium in Vaca Muerta, which was awarded to Welspun Living Ltd, a competitor of Techint. The media also pointed out that the Government accused the business elite of benefiting from protectionism for years.
“Javier Milei has attacked one of the richest men in Argentina, while the libertarian president vents his frustration with a business elite whom he has accused of having benefited from protectionism for decades,” the outlet noted.
The Financial Times reported that on Tuesday, Milei publicly questioned Paolo Rocca, CEO of Techint, after local media reported that the group was considering filing an antidumping complaint, after losing the key pipeline contract to the Indian company that offered better conditions.
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“The crossing reflects Milei’s tense relationship with many of Argentina’s most powerful businessmen, at a time when libertarian economist’s free-market reforms are transforming a notoriously rigid economy,” the British newspaper noted.
“While companies have celebrated the president’s measures to stop uncontrolled inflation and relax strict capital controls, the elimination of tariff barriers and cuts in public works budgets have hit Argentine manufacturers and the construction sector,” he highlighted.
“Milei wants the country’s economy to refocus on the sectors in which it has competitive advantages, such as mining, agriculture and technological services. In December he described industrial companies that demand protection as ‘privileged parasites,'” he added.
Argentine industrialists claim that they cannot match the costs of foreign companies due to the high tax burden faced by the formal economy in the country, considered one of the highest in Latin America.
The representative of Tenaris told the British newspaper that the final offer for the gas pipeline contract “had a price that implied that Tenaris worked with practically zero margin,” but that it would have allowed jobs to be protected at its plant in the province of Buenos Aires, which employs 420 people.
The article emphasized that Rocca “repeatedly warned of unfair competition from the Chinese steel industry and in December stated that it was strategically important for Argentina to maintain capacity ‘along the entire supply chain’ to shore up its fast-growing energy and mining industries.”
Given this context, the Argentine Industrial Union (UIA) proposed easing the tension and asked that the debate move forward quickly, focusing on investment and an agenda aimed at correcting the distortions accumulated over decades.
Sources from the UIA avoided taking a position in favor of any of the companies involved and stressed that it is a conflict that must be resolved between private parties, without affecting a work considered strategic.
“What happened responds to a dispute between private parties and must be resolved quickly and responsibly. It is a key work for Vaca Muerta, for the country’s energy competitiveness and for thousands of jobs. It cannot be at risk due to public discussions that do not provide solutions,” they stated from the entity.
