Chacaño industrialists against Super RIGI: They are going to take everything and they are not going to leave anything behind

The passage of the so-called "Super RIGI" bill, a new Regime for Large Investment Incentives, has sparked significant controversy among industrial leaders in the province of Chaco, Argentina. The measure, which received its first approval in the Chamber of Deputies, has drawn sharp criticism from the local industrial community, who argue that it will disproportionately benefit large foreign investors while leaving small and medium-sized enterprises (SMEs) at a disadvantage. According to Aldo Kastón, president of the Union Industrial del Chaco, the proposed regime sets conditions that are unrealistic for local industries to meet, effectively excluding them from the benefits offered to larger projects.

Kastón emphasized that the Super RIGI initiative focuses on investments of up to one billion dollars, a scale far beyond the reach of most local companies. He pointed out that while there is nothing inherently wrong with attracting such investment, the lack of fiscal incentives for SMEs creates an uneven playing field. These large-scale projects would receive tax breaks and other benefits that smaller firms cannot access, leading to a situation where the burden of taxation falls solely on national and provincial businesses. This, he argues, undermines the competitiveness of local industries and threatens their survival.

Another concern raised by Kastón is the potential for these large projects to import equipment, supplies, and even labor from abroad. Such practices could significantly reduce the positive economic impact within regional economies, limiting opportunities for local suppliers and workers. He warned that once these projects conclude, they might leave behind little more than empty land, as the infrastructure and workforce brought in would likely depart with the company. This dynamic, he said, resembles an extractive model that offers few long-term benefits to the regions hosting the investments.

In addition to criticizing the Super RIGI framework, Kastón expressed broader concerns about the state of Argentina’s industrial sector. He noted that despite government promises of economic recovery, industrial activity continues to decline. National industries are increasingly shifting operations overseas, and the promised resurgence of manufacturing has yet to materialize. According to him, the number of closing factories exceeds the number of new ventures being established, resulting in a net loss of employment. This trend, he argued, highlights the urgent need for substantial domestic investment and policy reforms to reverse the downward spiral of industrial production.

Despite some efforts by the provincial government to ease the tax burden on local businesses, Kastón acknowledged that these measures are insufficient given the broader national policies affecting industry. He highlighted the challenges faced by companies trying to recover after closure, noting that once a business stops operating, it often faces legal hurdles and financial difficulties that make restarting nearly impossible. This reality underscores the fragility of the current industrial landscape in Chaco.

In response to these challenges, both the Union Industrial del Chaco and the Union Industrial Argentina have been advocating for specific tools and support mechanisms to sustain the productive sector. Kastón stressed that these organizations continue to push for declarations of emergency status or targeted interventions aimed at stabilizing the economy and fostering future growth. Until such measures are implemented, he warned, the industrial sector remains vulnerable to further decline, with limited prospects for recovery.