Buenos Aires Governor met São Paulo businessmen, promoting predictability of Argentina after elections

RIO DE JANEIRO, BRAZIL – Aiming to deepen trade integration with Brazil, Buenos Aires Province Governor Axel Kicillof traveled to São Paulo on Wednesday (3) and met more than 70 business people at the headquarters of the Federation of Industries of São Paulo (FIESP).

Kicillof arrived in Brazil as part of a trade mission coordinated by Argentina’s ambassador in Brasilia, Daniel Scioli. The Buenos Aires governor’s interest in Latin America’s economic capital is evident in the numbers: 60% of Argentina’s exports to Brazil come from the Province of Buenos Aires.

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The luncheon, held in the packed FIESP hall, was attended by 75 Brazilian and international companies from various sectors – agribusiness, food, airlines, auto parts, tourism, services, and construction – represented by CEOs from companies such as Latam, Embraer, 3M, Andreani and General Motors. Rafael Cervone, vice president of Brazil’s largest industry association, attended.

Kicillof, who called the meeting “very important,” returned to Argentina with a handful of good intentions.

For example, electrical appliance chain Whirlpool announced plans to expand its production line in Argentina. Entrepreneurs from the shipping sector also showed a willingness to invest in the Río Santiago shipyard and the dredging of the Magdalena River. The governor assured that eight businessmen present at the meeting asked for a new meeting in Buenos Aires next week, although he did not clarify which sectors were involved.

“The policy we are following in Brazil was explained. We are in a rapid recovery, and we agree on the opportunities that are opening up and the needs of Brazilian companies operating in the province of Buenos Aires,” Kicillof said at a press conference after lunch with the businessmen.

Kicillof’s whirlwind trip and his production minister, Augusto Costa, had generated a lot of interest among local business people. The embassy in Brasília coordinated the meeting to promote Argentine exports while securing investment commitments in Buenos Aires. “We made it clear that the national and provincial governments are taking a series of actions to facilitate and accelerate reindustrialization,” the provincial governor added.

The governor’s task was not just to “sell” opportunities in Argentina. In his first trip abroad as governor, Kicillof also had to respond to the concerns of business people and the local press about the delicate political and economic situation in Argentina. Topics include the ongoing negotiations with the International Monetary Fund (IMF) and what might happen after the Nov. 14 general elections.

“Our political force has lost midterm elections in the three periods we have been in government. We have to put that in its place,” Kicillof said at the press conference when asked about the strength of the governing coalition to lead an economic agenda. “The monetary policy of reindustrialization is determined by the executive branch. And the alliance, the electoral front, is convinced of this, these are the ideas that unite us. The pandemic has been brutal, but we are confident that we will get through it with more production and jobs.”

The Argentine delegation also included the Argentine consul in São Paulo, Luis Kreckler, the chief advisor of Kicillof, Carlos Bianco, and Marcelo Fernández, president of CGERA.

Trade between Brazil and Argentina is showing signs of recovery after the blow of the pandemic. Between January and September, exports to Brazil increased by almost 50% compared to the same period in 2020, while imports increased by 60%.

Scioli celebrated that the trade balance with Brazil showed a surplus for the second consecutive month, with exports increasing by 50% in October compared to the same month in 2020. “In this situation (after the pandemic), we need to strengthen local products more than ever. The figures are convincing,” said the ambassador in Brasilia when he put on the table the figures from the Brazilian Ministry of Economy.

With information from La Nacion