And now Macri’s increasing ties with China (which he initially tried to downscale) are threatening a head-on clash with protectionism. As explicitly voiced by the Argentine Industrial Union (UIA), Argentine manufacturers are worried about Macri’s interest in an open economy in general and the dangers of this weekend’s G20 summit in Hangzhou bringing Argentina closer to formally acknowledging China as a “market economy” (and hence as a fair competitor) in particular. Since China’s manufacturing surplus last year (some 600 billion dollars and far from a record) is larger than the entire Argentine economy, the unequal competition is not merely a local problem but worldwide. Nor are UIA fears of more liberal economic policies opening the floodgates to an overseas influx reflected in the hard figures so far — imports fell 17 percent between mid-2015 and mid-2016. Yet the trade deficit with China is by far Argentina’s highest and with the home market so depressed, manufacturers are understandably apprehensive.

Source: Bueno Aires Herald August 31, 2016 03:56 UTC