SMEs respond to Economy Minister Caputo's criticism: 'There is obvious ignorance'

Small and medium-sized businesses in Argentina have pushed back against Economy Minister Luis Caputo's dismissive remarks about the industrial sector. Caputo had labeled those questioning the economic opening as "idiots." In response, Daniel Rosato, president of Industriales Pymes Argentinos (IPA), stated that the minister shows an "obvious lack of knowledge" about the realities faced by their industry.

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The minister raises sensitive issues, but there is an obvious lack of knowledge about what happens behind the factory doors. We are expensive due to the costs of reality, because producing in Argentina carries a burden that does not exist in the rest of the world.

Rosato explained that the high costs of production in Argentina, including taxes that are double those in other countries, along with significant logistical and energy expenses, make local products expensive. He rejected the notion that SMEs simply want to charge more for higher profits, asserting that these are "heavy burdens" that international competitors do not carry.

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We have taxes that are double what they pay in other countries. Those taxes, added to logistics and energy costs, make Argentine products so expensive that it is impossible to sustain if we are compared linearly with abroad. It is a very heavy backpack that other countries do not have and that falls directly on our shoulders.

The IPA president also criticized the indiscriminate opening of the economy, arguing that it creates unfair competition due to a lack of control over imports. He stated that SMEs are forced to compete without a level playing field, facing imports that ultimately harm local businesses.

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We are asked to compete with the world, but we are sent to the field without the same rules of the game and facing imports that end up destroying the local fabric.

Despite the criticism, Rosato expressed a willingness to engage in dialogue. He invited the government to inspect factories to jointly identify cost issues. "The solution is not disqualification of those who invest every day, but reversing the lack of dialogue and tools that SMEs are currently suffering," Rosato said. He highlighted that SMEs are the engine of Argentine employment and are ready to work on reducing the "Argentine cost" if their production realities are heard.

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The solution is not disqualification of those who invest every day, but reversing the lack of dialogue and tools that SMEs are currently suffering.