'...in Argentina export duties are paid and the exchange rate is controlled...'

Contessi launched its 149th boat and demanded a free exchange rate

ARGENTINA
Tuesday, September 17, 2024, 06:50 (GMT + 9)

During the presentation of the trawler “LITO”, the president of the shipyard Federico Contessi took the opportunity to express his concern about the current situation of the sector, criticizing the inflation in dollars and pointing out that Argentine companies "are, by far, the ones that pay the most in the world for access to the resource."

On a sunny spring afternoon, the Federico Contessi y Cía. S.A. shipyard yesterday celebrated the launching of its 149th fishing vessel, the F/V “LITO”, built for the ship-owning firm Insolito S.A. This boat, 24.10 meters long, was originally part of a multiple contract signed in 2021 under the name “Huafeng”. However, it changed ownership before its launch, reflecting the complex context that the fishing industry is going through.

The shipyard, which had seven vessels under construction simultaneously, freed up a slipway more than 90 days ago that is still empty, something that had not happened for a long time, which shows the impact of the crisis on the naval and fishing industry.

Domingo Contessi, president of the shipyard, began his speech by thanking the Arbumasa group and the Di Bona family, who have a fishing tradition in Argentina for more than 50 years. He also recognized and asked for applause for the shipyard workers and professionals, thanking them for their commitment to the national industry.

In another relevant passage of his message, Contessi stressed: “The majority of businessmen understand that it is essential to eliminate inflation and order the macroeconomy. We support the efforts to maintain the fiscal surplus, but exporters suffer from inflation in dollars that erodes our capacities month after month, greatly complicating the pricing of long-term projects and affecting our competitiveness.”

He added emphatically: “We do not want another devaluation, but it is imperative that the official exchange rate ceases to be controlled and becomes completely free.”

Contessi also warned of the risk of a deeper crisis in the fishing and naval sectors if action is not taken promptly: “The predictability of quotas is important, but so is profitability. The sector should not be ashamed to recognize that some farms are in deficit, and opening up its numbers is essential to moderate and rationalize negotiations with suppliers, unions and governments. If we do not do so, the crisis will worsen, putting companies, jobs and the future of the industry at risk.”

Finally, he referred to the controversy over the contributions of the fishing sector:  “Some claim that fishing companies do not pay for the resources they extract, but the reality is that they face an overwhelming tax burden, recognized even by the government itself. Unlike other countries, in Argentina export duties are paid and the exchange rate is controlled. These conditions make Argentine fishing companies, by far, the ones that pay the most in the world for access to resources.”

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