HomeTaxTierra del Fuego: agreement for the electronics industry

Tierra del Fuego: agreement for the electronics industry

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Within the framework of the Basic Consensus launched by President Mauricio Macri two weeks ago, the national government, the government of the province of Tierra del Fuego, the Association of Argentine Electronics Terminal Factories (AFARTE) and the Metalworkers Union (UOM) signed a sectoral agreement with the aim of improving the productivity and competitiveness of the industry and reducing the prices of technology for consumers. This is a historic agreement in which all parties involved commit to contribute to a common goal.

“We are looking for gradual ways to resolve structural problems, this agreement was unthinkable a few years ago,” said the Minister of Production, Francisco Cabrera. The minister also stressed that “The agreement seeks to reduce the price of technology, which affects the competitiveness of the entire economy across the board, preserving jobs in the sector, and at the same time diversifying the productive profile of the province.".

Among other points, the national government is committed to sending Congress a bill to gradually reduce the internal tax rates for products such as cell phones, televisions, air conditioners and microwaves. The tax would be gradually reduced from 10,5% in 2018 to 2% in 2023.

In addition to the gradual reduction of the internal tax, the government will carry out a series of measures to improve the productivity and competitiveness of the industry in Tierra del Fuego. Among them, it is committed to adapting the production processes provided for in the regime to lower production costs. Will work in a plan improvement plan to lower customs and maritime transport costs, implement the Single Window for Foreign Trade (VUCE) and improve the security of the routes. It will also deepen the efforts it has been making to eliminate smuggling, especially of products manufactured in the Province..

The provincial government is committed to reducing the Production Process Verification Rate (TVPP) and port costs. The companies, for their part, reached an agreement with the unions to improve productivity and competitiveness. They will also seek to improve the efficiency of production processes and reduce costs in the acquisition of raw materials, among other commitments.

Signatories

The sector agreement was signed by Cabrera, representing the Nation; Governor Rosana Bertone, for the province; the general secretary of the Metalworkers Union (UOM), Antonio Caló, for the sector syndicatesl; and by the sector businessman: the president of the Argentine Association of Electronic Terminal Manufacturers (AFARTE), Federico Hellemeyer; Alberto Hojman, from BGH; Martín Vaca Narvaja, from Brighstar Fueguina; Isabel Mezzetti, from Carrier Fueguina; Roberto Vázquez, from the Mirgor Group; Luis Galli, from the Newsan Group; Gabriel Gruner, from FAPESA; Enrique Jurkowski, from Radio Victoria; Marcelo Padovani from Electrofueguina; Carlos Eduardo García, from Digital Fueguina and others.

Also participating in the signing ceremony held at the Treasury Palace were the Minister of the Interior, Rogelio Frigerio; the Minister of Finance, Nicolás Dujovne; the Secretary of Labor, Horacio Pitrau; the Secretary of Industry, Martín Etchegoyen; the Minister of Production of the province of Tierra del Fuego, Ramiro Caballero; the Secretary General of the UOM of Tierra del Fuego, Oscar Martínez, and other representatives of the different companies in the sector.

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