Argentine industrialists fire back at Caputo over criticism of manufacturing decline

The Argentine Industrial Union (UIA) President, Martín Rappallini, responded to Economy Minister Luis Caputo's harsh criticism of local industries. Caputo's remarks, made while defending his economic plan, highlighted growth in sectors like energy, mining, agriculture, and knowledge, while emphasizing the decline of manufacturing.

Manufacturing in Argentina dropped by 1.8% in the first semester of 2026, with over 26,000 companies shutting down since President Javier Milei's administration began, including iconic companies such as tire maker Fate. Caputo argued that the criticism overlooked the sector's pre-existing crisis, despite receiving significant support from previous governments, including energy subsidies and overpayment for products.

He emphasized that even though people were paying exorbitant prices and receiving energy subsidies, the industry still declined by 10%. Caputo urged for a dialogue to address issues affecting industrial competitiveness, such as taxes, labor costs, infrastructure, and access to financing. He also advocated for recognition of industrial entrepreneurs who invest in innovation and exports, asserting that a competitive industry is essential for Argentina's integration into the global economy and its ability to export.

Rappallini criticized Caputo's stance, noting that it did not foster necessary dialogue to improve Argentina's economic situation.