The customs barriers to different foreign products has triggered a serious debate about the profound impact of the economy as Argentina.

For over a year and a concrete, international home products have been victims of thousands of barriers for entry to Argentina, thus country’s trade relationship with the region and the world has been significantly eroded.And is that as the government of Cristina Fernandez is intended to give impetus to the domestic industry by encouraging the development of supply and demand internally. Thus the protectionism, Economic policy born with the mercantilists of the seventeenth and eighteenth again be evident in the current scenario.


Limit the negative impact of imports in Argentina

Following the decision to narrow the entry of goods, criticism from many sectors Based on the negative impact that could bring the provision on the economy did not wait. For its part, government officials soon came to defend the measure. Thus, the Interior Minister Florencio Randazzo, insisted that Argentina “does not restrict” imports, but said that “will defend the domestic industry”. At the same time denied that he had closure of borders.
Consistently, the Minister of Industry, Deborah Georgi, strongly defended the decision saying: “we protect our domestic market from unfair competition, we can not damage the domestic industry involving the deterioration of working conditions for our workers”.

The concern about the restrictions of corporate products

However, entrepreneurs the technology sector claim to be one of the most affected by the non-entry of spare parts and foreign goods. Several multinational firms said they will be more expensive and missing notebooks and netbooks from leading brands as well as delays in the arrival of new technological developments.

In counterpart, few Argentine companies celebrated the decision and said that the industry will grow, opening a market that saw itself overshadowed by foreign products. At the same time stated that they encourage the development of research, with the production of local innovations that could compete equitably with international artifacts.

Protectionism of the domestic industry

While there are cross views regarding the benefits and obstacles that could bring the action, experts say that while it is important to protect the domestic industry, it can harm consumers with possible increases in values, lack of balance between supply and demand, And industries that use inputs and intermediate goods from abroad to make the final product.

This was illustrated by economist Marcelo Lascano, who said that “imports serve to act as a shock, if eliminated, this will lead to low supply, generating a price increase”.

Quality vs Argentina international quality

The question arises as to the analysis is whether the domestic and local industry are likely to replace the quality of imported goods. Leading brands in the world market have developed devices that are now competing successfully managing to be the number one selling its high-end. This is a product of extensive competition of large corporations that causes permanent and constant innovation of equipment, which leads to their high efficiency.

At the same time, the fall in investment and the establishment of industries in Argentina, the lack of profitability that the market had also cast doubt on the ability of local companies to attend the growing demand for various products, especially those of technological origin.

The most protectionist country in the region

While the national government is committed to denying that there are major restrictions on the entry of foreign products, a year ago the Global Enabling Trade Report 2010, Produced by the World Economic Forum, said that Argentina is one of the 30 most protectionist countries in the world.

The ranking consists of 125 countries and the Andean nation is ranked 95, still above Brazil, Ecuador and Colombia, but is below Venezuela, Paraguay and Bolivia, standing within four more barriers in the region.

Meanwhile, while protectionism has major detractors while its opposite the free trade Also, most important is to analyze the extent to which local industry can take the consumer without increasing prices, keeping the offer. And while if it is really lawful for people to become captive market of companies that far from being “national” local firms are only found in private hands. The issue is complex, but the effectiveness or otherwise of the model will have its consequences for a very short term.