Argentina Slashes Import Tariffs On Capital Goods To Boost Industrial Competitiveness

(MENAFN- The Rio Times) Argentina's Economy Minister Luis Caputo announced yesterday a significant reduction in import tariffs for 27 capital goods. The measure lowers duties from the current 20-35% range to 12.6%, aligning with Mercosur's common external tariff.

This latest decision adds to the growing list of economic liberalization policies implemented by President Javier Milei 's administration. Caputo highlighted on social media that the government has now reduced tariffs on 1,081 products since taking office in December 2023.

The affected items include essential industrial equipment such as elevators, industrial fans, laser cutting machinery, metalworking presses, and specialized equipment for the oil industry.

The list also covers bakery ovens, electric hoists, centrifugal pumps, and various manufacturing machinery. The government aims to improve industrial competitiveness by allowing companies to access advanced technology at lower costs.

Officials expect these changes will eventually translate into reduced consumer prices and increased productivity across multiple sectors. This announcement follows several similar measures in recent months.



In mid-May, the government eliminated import tariffs on mobile phones and reduced taxes on other electronic products. The mobile phone tariff will drop from 16% to 8% immediately, with complete removal planned by January 2026.
Milei's Tariff Cuts Spark Industry Backlash
In March, the administration cut import tariffs on textiles and footwear from 35% to 20% and reduced fabric tariffs from 26% to 18%. The government justified these reductions by pointing to price disparities with neighboring countries.

These policies align with Milei's broader economic strategy of market liberalization, deregulation, and fiscal discipline. The administration has also eliminated the 7.5% PAIS tax on imports and simplified customs procedures to reduce bureaucratic hurdles.

Industry groups have expressed concerns about these rapid changes. The Argentine Industrial Union warned about "unequal and unfair competition" without complementary measures to strengthen domestic competitiveness.

Textile and footwear manufacturers predict job losses and business closures due to increased import competition. The government maintains that these reforms are necessary to modernize Argentina's economy, combat inflation, and integrate the country into global trade under more competitive conditions.

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