Sturzenegger anticipated the particular impact that there will be on one of the sectors that they take withholdings

The Minister of Deregulation and Transformation of the State of the Nation, Federico Sturzenegger said that the decline in withholdings announced by the government of Javier Milei will enhance the “premium export market of our country” such as leather.

“I would like to count on A historical conflict that there was devastated a potential premium exports market of our country and that was resolved with the decline of withholdings announced yesterday by Manuel Adorni and Luis Caputo. It has to do with the leather industry, “Sturzenegger said.

In an extensive post in his X account, the national official praised the measure announced by Caputo, which was an order in which they insisted from the field sector and the governors of provinces with strong agricultural production.

At a press conference at Casa Rosada, the presidential spokesman and the Minister of Economy announced that from next Monday the aliquots of retentions of the main agricultural products will be temporarily dropped and will be completely eliminated for regional economies, including sugar, cotton , wine and rice.

In that context, Sturzenegger explained: “The tanners (which are the ones that process the leather) do not want the leather to be exported so that the local price is the lowest possible. The refrigerators, for which the leather is a source of additional income (which can become 5% of the price of the steer), obviously they want yes. QEU Leather is worth more for refrigerators benefit consumers Because it allows lower the meat. “

“In the 70s the tanners managed to close the leather export market (and then some economists cry the external gap …). In the 90s the market was reopened although with a retention. But made the law made the trap: the price that is He used to set the retention was not the price of here but a (very high) price of the US.

For Sturzenegger, “the incredible thing about this story is that since the tanners did not grow in capacity (much instability, expensive capital, etc.) the leather had no demand and the refrigerators ended up burying the leather, which generated an environmental liability.”

“The State intervention had managed to transform a premium export product into an environmental liability. Caramba! That was the path of success,” he ironized.

As a balance, the official stressed: “By eliminating retention, this distortion ends. When the leather is valued, the livestock producer wins the refrigerator and wins the consumer. “

“It is as always proclaimed President Javier Milie, while the claws of the State destroy value in his attempt to redistribute wealth (generally of the population in general to the groups with lobby capacity), Market freedom recovers and restores that richness to those who created it “, concluded.