Cavallo again attacks government, criticizes RIGI: 'It discriminates against millions of companies'

Former Economy Minister Domingo Cavallo has strongly criticized the Argentine government's proposed investment regimes, the "Régimen de Incentivo para Grandes Inversiones" (RIGI) and its enhanced version, the "Súper RIGI." Cavallo asserts that these policies unfairly discriminate against and disadvantage millions of companies and entrepreneurs, thereby hindering sustained economic growth.

In a personal blog post, Cavallo argued that the primary obstacles to economic expansion are the "anti-investor" and "anti-exporter" biases that have permeated Argentina since 2002. He believes that eliminating these biases is crucial for economic success, a goal he feels the RIGI and Super RIGI fail to achieve. Cavallo contends that these regimes restrict businesses from making investment and production decisions based on both domestic and international demand, limiting opportunities for economies of scale and productivity gains.

Cavallo drew a parallel to the 1990s, highlighting how Argentina's grain yields improved significantly compared to Brazil after the elimination of export taxes and other cost-reduction measures. He also pointed to the "anti-investor" bias, which he attributes to difficulties in obtaining financing at reasonable interest rates. Cavallo urged the government to swiftly remove all currency controls, including export taxes, and to implement regulations preventing their reintroduction, advocating for the permanent free movement of capital and the accumulation of reserves.