Economy Minister Luis Caputo responded this Wednesday to the harsh criticism leveled by the Argentine Industrial Union (UIA) during the Industry Day event. Speaking at the 'Winds of Change' gathering organized by the Libertad Foundation at the Sheraton Hotel in Retiro, the official defended the economic model and distanced himself from business leaders questioning the administration.
'My job is to defend the interests of 48 million Argentines, not some particular businessmen,' Caputo fired back, in a clear message to the industrial leadership. The minister acknowledged that the change of course generates frustrations and that 'everyone defends their own interests,' but insisted that trade opening and deregulation are the right path.
The response to the UIA
The UIA's discontent had been expressed on September 2, when at the Industry Day event, the entity's president, Martín Rappallini, called for 'a bridge' between the current economy and a competitive one, warning that 'the economy cannot be measured solely by inflation trends.' More forceful was vice president Guillermo Moretti, who accused the government of 'deindustrialization' and called Caputo a 'debtor' and 'a trader who doesn't know what a lathe is.'
In that context, the minister came out to defend his management and questioned the previous protectionist model. 'The previous model made consumers pay between 2 and 10 times more for products than in neighboring countries: cars, clothing, footwear, electronics, cell phones, tires,' he said. He added: 'Industry fell 10% in the last 11 years despite subsidies.'
'Competitiveness is not about the exchange rate'
One of the central axes of his speech was rejecting the idea that competitiveness depends on the exchange rate. 'It's not about the exchange rate; it's about lowering taxes, reducing regulations, lowering financial costs, and improving infrastructure,' he explained. In that vein, he mentioned visits to Ombú (in Catamarca) and Pampero plants as examples of companies that can compete in an open scheme.
Caputo also addressed poverty, a sensitive issue for the administration. 'In two years, there will also be people who can't make ends meet. In the United States, there are people who can't make ends meet. You can't change 100 years in just one,' he said, adding that poverty 'has halved.'
'Are we going to be Switzerland in a year? No, we didn't promise that. What we are sure of is that this is the right path.'
The minister insisted on the need to persevere: 'Perseverance, believing, and not straying from the path is important. Everything will be achieved with time. We work and exhaust ourselves so that this change happens for everyone as quickly and as well as possible.'
Two-speed growth and announcement of works
Asked about the pace of the economy, Caputo noted that 'in this model, growth happens at two speeds. It's not negative. It's obvious.' He also announced the tender for 5,000 kilometers of national highways, a measure aimed at boosting infrastructure and employment.
The minister was accompanied by the Secretary of Economic Policy, José Luis Daza. In his speech, he also referred to his recent meeting with U.S. Treasury Secretary Scott Bessent, who praised the Argentine economy. He also took aim at the previous government: he mentioned that a bank told a governor that they were 'ashamed of what they had earned in 2023 with Leliqs.'
Absences and context
It is worth recalling that at the Industry Day event, no national official participated, unlike the previous year, when Caputo and then-Deputy Chief of Government of Buenos Aires City, Diego Santilli, attended. That absence was read as a new chapter in the tense relationship between the government and the UIA.
With a defiant but conciliatory tone, Caputo closed: 'Most businessmen understand that there has to be a change. It implies reinventing themselves and investing.'