Argentina Week, an event in New York City orchestrated by the Argentine government to draw foreign investment, concluded on Friday following a week filled with discussions involving investors and business leaders. Economy Minister Luis Caputo described it as “wonderful. Everyone in attendance could see that the interest in investing in Argentina’s real economy is at an all-time high,” X. “Investment decisions that would normally take more than six years to make are already being made. We’re talking about tens of billions of dollars that are already starting to flow in.” However, Argentine media outlets reported that the event itself was overshadowed by a scandal involving the government’s chief of staff, Manuel Adorni, who traveled to the U.S. city with his wife, who is not a public official. Four projects were announced as a result of the event, totaling US$16.1 billion; however, most of them originated from Argentine companies. “Mercado Libre will invest $3.4 billion to expand its logistics operations in the country, creating 1,900 direct jobs,” stated a communiqué from the President’s Office. Transportadora de Gas del Sur, an Argentine company, has declared a $3 billion investment in Vaca Muerta aimed at processing natural gas liquids. Pampa Energía has submitted an application to participate in the Large Investment Incentive Regime, proposing an investment exceeding $4.5 billion dedicated to the exploration and production of unconventional oil.
The sole announcement from an international entity was made by the Canadian mining company First Quantum Minerals, which is set to invest approximately $5.25 billion in the Taca Taca copper project located in the province of Salta. “More than 80% of the attendees were Argentine in almost every session.” “It could have been held in [Buenos Aires neighborhood] Puerto Madero,” posted Sebastián Lacunza. An individual familiar with the event’s organization confirmed this, noting that if the event were held in Buenos Aires, “the global CEOs of big multinationals would not have attended.” Gastón Carelli Lynch “There is undoubtedly interest in investing in certain sectors in Argentina—specifically those that were most prominently promoted during Argentina Week in New York.” He stated that the mining sector, particularly critical minerals, is “undoubtedly one of them,” especially as several copper-related projects are poised to commence in Catamarca and San Juan as well. “And of course, Vaca Muerta, which is, above all, the hope not just of the national governments, but also of the Patagonian governors, of Neuquén and Río Negro, the only two provinces that haven’t seen a net loss of jobs over the last two years,” he added.
Carelli Lynch stated that the primary focus of the event was centered on political risk. “Specifically, doubts about whether the government will continue along the path set by Milei’s administration when he is no longer in office,” he explained. He stated that “the fate of the Argentine government may also depend on the fate of Donald Trump, who, according to all U.S. polls, is in a tough spot for the midterm elections, and a poor election result could lead to many calls for Trump’s impeachment.” Milei traveled to New York accompanied by 11 governors from various political parties — “to demonstrate governance and consensus around ‘mining, farming, oil and gas’.” “There are uncertainties regarding whether the government capitalized on this week, and there were also concerns among certain sectors —businesspeople and bankers— who stated, ‘If [Peronist Buenos Aires governor] Axel Kicillof begins to gain competitiveness in the upcoming months, the government will face challenges in maintaining the macroeconomic indicators’.” A diatribe by President Javier Milei against business leaders captured attention: at Argentina Week, an event focused on attracting investments, he referred to Paolo Rocca and Javier Madanes Quintanilla, two of the nation’s prominent industrialists, as “crony businessmen.” Paolo Rocca is at the helm of Techint, the foremost producer of steel pipes for the oil industry. The company garnered attention when it recently lost a pipeline construction contract to the Indian firm Welspun Group. Javier Madanes Quintanilla is the owner of the aluminium giant Aluar and the tire manufacturer Fate, which ceased operations two weeks ago.
Marco Kofman states, “these are large business groups that have been part of our economy for many decades and will continue to be so, regardless of the governments in power or the direction of economic policy.” Kofman asserts that these actors are exploiting the national administration’s liberalization of the foreign currency market to facilitate capital flight. Conversely, he stated, prominent business figures like Rocca and Madanes Quintanilla are not solely industrialists. Rocca operates a gas and oil division through Tecpetrol, which is actively expanding its operations in Vaca Muerta. Madanes Quintanilla, for his part, is also in the energy business: “Aluar Wind Farm involved investments of nearly $400 million.” Whatever these business leaders lose in the manufacturing sector, they gain in their energy ventures. “This is a business community that, wherever it sees opportunities, invests a portion of its capital,” Kofman told. The economist suggests that business leaders might be “more or less annoyed” by Milei’s insults; however, in truth, their concern is minimal. “These are powerful groups that will remain so even when Milei is no longer in the Casa Rosada, and they will emerge from this administration more financially driven and more dollar-dependent than ever,” he concluded.