Dollar Malbec: Massa announced that there will be a differential exchange rate for all regional economies

The Minister of Economy of the Nation, Sergio Massa, announced that there will be a differential dollar for regional economies from April 1. Although he did not specify the value at which exports can be liquidated, he said that the measure will come into force next month for winemaking, and then other productive sectors will be incorporated.

“Understanding that the problem of the loss of competitiveness due to the difficulties represented by frost, hail and also because of our macroeconomic problems, have caused us to lose markets”, introduced the Minister in his speech during the traditional breakfast of the Argentine Wine Society (Coviar)as part of the Harvest Festival.

“Last year, in the decision to recover markets and consolidate reserves, we tried to launch an export strengthening program for a sector (soy dollars). Of April 1 We will implement it in all regional economies, starting with viticulture, so that they can recover markets and have the possibility of recovering from the losses caused by hail and frost,” he said. .

The Minister did not specify when the measure will come into effect for the rest of the sectors, how long the benefit will last or what exchange rate will be applied in each case. Details will be revealed in the coming weeks. “We have 20 days to work,” Massa stressed.

Of course, in exchange for the differential dollar, the Minister of Economy demanded good prices for products and values ​​accessible on the internal market. “We must ensure the competitiveness of exports, but also the ability of the new prices to reach all producers, so that the measure is not for the few. We also have the challenge, among all of us, to guarantee a good price in the domestic market If the wine belongs to the Argentines, in addition to supporting export markets, You have to take care of the prices at the table of the Argentines“, remarked the official.

Massa also announced that the decree that authorizes the $50 million line of credit for the support program for small wine producers in Argentina will be published on Monday. (Proviar II).

“The executive order that will be released on Monday, which has already been signed, allows for the loan of $40 million, with a national state contribution of $10 million, for the start-up of Proviar II, which is a huge task. .continue to multiply the work of the State and the producers together”, declared the minister.

In addition to strictly macroeconomic announcements, Minister Massa completed his speech with a few other announcements, related to various sectoral issues.

First, he indicated that in 2023, the Nation will provide funds to subsidize the rate of harvest and transport credits in collaboration with the province of Mendoza for a line of credit of 10 billion dollars, which will be added to the $3 billion line of the past vintage. “It’s a one-time payment for 300 days,” he said.

On the other hand, he endorsed the Nation’s commitment to continue to participate in the prevention and eradication of Lobesia Botrana, the plague also known as the “Vine Moth”, which entered years ago through border crossings. Last season, the Nation contributed $665 million, which was supplemented by $835 million from the Province of Mendoza.

Similarly, the Minister for the Economy recalled that the line is operational in the Investment and Foreign Trade Bank (BICE) productive investment scheme, for producers affected by the frost, for a period of 30 months with a subsidized fixed rate in pesos and a grace period of 18 months. “Maintaining employment has also been taken into account, which is why the establishment of Reproductionwhich are already approved and have started to be liquidated,” he said.

Massa also promised to add $583 million to state aid as of next week. Agricultural Emergency Law, which was declared to support thousands of growers who have been affected by frost, hail, drought and heat waves.

At another time, Massa announced that an agreement will be signed with the government of UNITED STATES to “remove restrictions on wort exports”. Recall that at the end of last year, the US state imposed a series of tariffs and fines on some Argentine companies (leaders in the grape sector) for allegedly unfair competition on US soil.

Massa also referred to government investments in irrigation systems in different productive regions of Mendoza. “As of March 9, when the envelopes are opened, we start the irrigation system for the branch Dig, with an investment of 1.300 million dollars. In addition, we are bidding for the irrigation system West lujan, financed at 80% by the national State. At the same time, the modernization of the irrigation system continues Hijuela”.

Finally, it was announced that the Technology Transfer Center 4.0 with an investment of 3.5 million dollars, thanks to the agreement signed last year through the INV with the National Institute of Water (INA), the National Technological University (UTN), the Conicet and the National Space Activities Commission (Conae).

In addition to Massa, the Secretary for Agriculture, Livestock and Fisheries of the Nation, Juan Jose Bahillothe minister of the Interior, Edward “Wado” by Peterthe Minister of Science, Technology and Productive Innovation, Daniel Filmusthe Minister of Social Development, Victoria Toulouse Peace, the former Minister of Agriculture, Julián Domínguez, the Governor of Mendoza, Rodolfo Suarezthe governor of Jujuy, Gerard Moralesthe outgoing chairman of Coviar, Jose Zuccardi, the new president of the entity, mario gonzalez there the president of the National Institute of Viticulture (INV), Martin Hinojosa.

In turn, the businessmen sent their demands to the national government, taking advantage of the presence of Sergio Massa.

Mario González, the new president of Coviar, for example, Mario Gonzalez, warned that “macroeconomic instability is deadly for value-added, job-generating and highly internationalized products, such as viticulture”.

He also stated that 40% of grape production is exported as final destination, which is why he asserted that “the complete and definitive elimination of withholding taxes on wine and concentrated grape juice is necessary from all emergency”.

For his part, the winemaker Jose Zuccardi, former chairman of Coviar, spoke on behalf of the wine sector regarding the handling of the zero tolerance bill. The businessman called the discussion “absurd” and pointed out that Argentina would be the first wine-producing country in the world with an absolute ban.

“It has been shown that accidents are not caused by those who have a diploma of less than 0.5 grams of alcohol per liter of blood. I ask the legislators not to approve the law and if they do, that the provinces do not adhere,” he concluded.

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