Export to grow – Infobae

Export to grow – Infobae
Export to grow – Infobae

Exports have become a crucial factor for Argentina

In a context of permanent fiscal deficit and given the need to achieve a surplus that will get us out of our economic crisis once and for all, exports have become a crucial factor for Argentina. Chile, for example, in addition to surpassing us in total, exports twice as much in per capita terms as Argentina, and Uruguay, although it exports less in absolute terms, triples the per capita exports of our country.

Poverty, unemployment and low wages are reversed with production and employment, and SMEs are the engine of that change. Everything that provides added value, whether in products or services, represents the possibility of more jobs and high salaries. Exports have a direct impact on these needs, while providing the state with access to foreign currency thanks to its positive balance.

We need to strengthen the export sector, particularly Small and Medium Enterprises. SMEs are not only essential for the economy, they are the engine of economic development of the most powerful countries.

In Germany, for example, 97% of export companies are SMEs, providing 60% of employment and almost the same proportion of the economy’s added value. This model is replicable in Argentina, where industrial SMEs have begun to gain international markets thanks to the quality of their products, although they are still far from reaching their true potential.

At the moment, Less than 10% of Argentine exports come from SMEs, a significantly low figure compared to the international panorama. True heroes who have managed to penetrate international markets and sell their products or services in Brazil, Europe or the US. Quality has been the spearhead.

Less than 10% of Argentine exports come from SMEs
Less than 10% of Argentine exports come from SMEs

Therefore, if we want to promote the growth of exporting SMEs, it is essential to implement regulations that facilitate the export of value-added products. These are: simplify bureaucratic procedures, offer accessible and cheap credit, reduce the tax burden and guarantee that the foreign exchange obtained is paid at the best possible value. These measures would not only allow SMEs to expand and modernize, but would also contribute to the creation of jobs with higher wages.

An example of the positive impact that adequate support for the export sector can have is the case of Argentine winegrowing. In the 1980s, Argentine wine production and quality were in decline due to its exclusive focus on the domestic market. However, Some family wineries began to explore the possibilities of exporting, modernizing their processes and raising their quality standards. This effort transformed the wine industry in the 90s, led by Malbec, reaching annual exports of 600 million dollars, also revitalizing domestic consumption.

Argentine economic models have ignored the central role of value-added exports, whether through a cheap dollar that floods the market with imported products at ridiculous prices, or protectionism that limits access to necessary inputs, end up harming both the local production and exports. For Argentine SMEs to compete internationally and contribute significantly to the economy, an economic environment is necessary that offers them the necessary tools and support. A competitive exchange rate, clear export support policies and access to credit are essential.

In conclusion, promoting exporting SMEs is an essential strategy for the economic development of Argentina. With the right support, these companies can become an engine of growth, generate quality employment and contribute to a sustainable fiscal surplus. The measures are simple, clear, and only require political decision and common sense, as the most advanced nations do. This is the most important decision we must make.

 
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