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The second virtual talk of Grupo Los Grobo was developed in conjunction with FADA and MAUÁ. “Zero retentions? How could they be implemented? Possible impacts and models” was the title of the conversation in which Roberto Bisang (Economist, IIEP professor) and Agustín Tejeda (Bs. As. Cereal Exchange) participated and were moderated by Gustavo Grobocopatel (Grupo Los Grobo) and David Miazzo ( Chief Economist of FADA). The public remained captive until the last minutes of the meeting, which offered general concepts, specific data, reflections and even “homework”.
“Currently we apply export duties and restrictions based on assumptions from the past,” Bisang explains. “Mainly three assumptions: it is believed that the costs of agriculture are pesified while their income is in dollars. But when we look at the cost structure we find that more than half are dollarized, be it rents, imported supplies and others. On the other hand, it is lost sight of the fact that from the genetics of the grain to the shelf there are an infinity of steps, it is no longer corn, cornmeal, polenta at home. It is a set of industrial steps with transformation or conditioning that mean that, at the end of the day, the part related to the primary sector in the total price is less relevant than the collective imagination believes. Finally, there is the belief that "we put a total tax on them, they say nothing, they continue to sow the same", but statistics show that in recent years the reactions of agricultural and agro-industrial economic agents to the price system”, concludes the economist.
Historically, what happened when DEXes were imposed? “As the DEX and the restrictions on exports increased, the growth rate of the area planted in Argentina decreased,” Tejeda demonstrates. “If we phase out DEX, we see that the industry could quickly respond with further growth in production and exports. If the policies remain as they are, we would barely grow 5%”, completes the economist from the Buenos Aires Cereals Exchange.
"The gradual elimination of DEXs has a direct impact on the economic activity, the vision and the life of the towns and cities of the productive interior," says Miazzo, adding that he finds precisely the lack of energetic support from citizens in general and the political actors of the interior in particular on the reduction or elimination of export duties since "it is the provinces that provide and then do not receive". In this sense, FADA has two reports prepared for two areas of Buenos Aires and Córdoba that show how much the regions lose due to Export Rights and the equivalent of everything that could be done. Both are available on the Foundation's website.
A question that emerges from the talk is where the proposals are "skulled" towards an overcoming scheme. In this regard, Bisang maintains that “there are very few institutional settings in Argentina for an effort of this type. If we think about the academic system, it is practically impossible. If we think about the system of NGOs, it is very difficult to find one in the long term to make a project of this type. And if we think about it in the public sector, it is absolutely dismembered. Anyone must have heard 10, 20, 30 plans in the last 5 years. Incongruous with each other and all made from a partial vision. The scope of discussion is lacking”, affirms the economist.
“It is our responsibility to put the "long headlights" to show society that we really want more development, more genuine employment, better quality of life. Show that reducing DEX is a tool to achieve all of that. It is not reducing to reduce but in pursuit of the general good”, explains Miazzo.
"We have failed to create integrating proposals and to build the bridge of how this can be done to achieve the general balance that economists say," reflects Grobocopatel. "We have a homework assignment to say 'zero withholding'. But, with ingenuity, put together a design for that to happen and be something positive for the whole of society. Not just for the agricultural sector," concludes the businessman.
The talk took place on Thursday, May 19 and is available on the FADA Foundation YouTube channel. Listeners will be able to find in that hour and a half a debate full of concepts and objective information to strengthen arguments and put this relevant topic up for discussion and on the agenda.