As President Mauricio Macri travels to China in order to promote foreign investment and to participate in the G-20, yesterday’s “Industry Day” brought national tensions to the forefront between the industrial sector and the government. The World Trade Organization (WTO) categorizes China as a “non-market economy,” (NME) but China has argued that should expire in December 2016 — hence Kaufmann Brea’s plea. Aside from fears on China obtaining recognition of MES by the Argentine government, there are also concerns within the declining sector. This week, the INDEC national statistics agency revealed the industrial sector plunged by 7.9 percent in July, marking the sixth consecutive month of decline and the worst drop in 14 years. This would imply further danger to an Argentine industry that would struggle to compete with cheaper imports.

Source: The Bubble September 02, 2016 14:03 UTC