Argentine industrialists fire back at Caputo over criticism of manufacturing decline

Argentine Industrial Union (UIA) President Martín Rappallini rebuked Economy Minister Luis Caputo after he criticized local industries for their high costs. Caputo's remarks came during a defense of his economic plan, highlighting growth in energy, mining, agriculture, and knowledge sectors while noting the manufacturing sector's significant decline.

Manufacturing activity dropped 1.8% in the first six months of 2026, with over 26,000 companies, including historic ones like tire maker Fate, closing since President Javier Milei's administration began. Caputo argued that those criticizing the government overlook the industry's pre-existing crisis, despite receiving significant support from previous administrations through energy subsidies and other measures.

He highlighted the absurdity of people paying excessively high prices for industrial products, even if they received subsidies. Caputo emphasized the importance of energy, mining, agriculture, and knowledge sectors for foreign exchange earnings and macroeconomic stability, arguing that their wealth would eventually benefit the rest of the economy.

UIA President Rappallini responded, stating that Caputo's comments do not foster the dialogue needed for the country's progress. Rappallini emphasized that UIA has been addressing competitiveness issues, such as taxes, labor costs, infrastructure, and access to financing. He called for recognition of industrial entrepreneurs investing in innovation and exports, emphasizing that supporting industry is not incompatible with maintaining macroeconomic stability.

Rappallini stressed the need for a competitive industry integrated into the global economy capable of exporting, rather than seeking special treatment or devaluation of the currency.