Argentine industry reels under Milei’s free-market push

The Argentine industrial sector is struggling under President Javier Milei's push for a free-market economy. Kioshi, once a thriving footwear manufacturer employing nearly 120 people, now has only 14 workers producing a quarter of its former output. The director of the company, Emmanuel Fernandez, laments the collapse of the domestic market, saying that people are going into debt to afford food, let alone shoes.

Since taking office in 2024, Milei has dismantled protectionist policies, removing import quotas, taxes, and other trade restrictions. This has led to a surge in imports that have dealt a significant blow to local manufacturing. In June, nearly 40% of Argentina's industrial capacity remained idle, and output fell by 5% between June and July, the steepest decline in 16 months.

The Argentine Industrial Union has called for government intervention amidst the loss of around 90,000 industrial jobs and the closure of nearly 30,000 companies over the past three years. Although inflation was a major concern when Milei came to power and has since been reduced, unemployment has become the primary worry for Argentines, according to recent polls.

The government attributes the job losses and decline in output to "growing pains" on the path to a more prosperous future as envisioned by Milei.