Argentine Industrial Union President Martín Rappallini responded sharply to Economy Minister Luis Caputo following the minister’s severe critique of domestic industries regarding their product pricing. Rappallini remarked that such comments do not “foster the dialogue so desperately needed” during a period of declining industrial activity. Caputo made the remarks last Wednesday while defending his economic plan, highlighting growth in the energy, mining, agriculture, and knowledge sectors, despite local manufacturing experiencing one of its most significant downturns in recent years.
Consultancy firms report a 1.8% decline in manufacturing during the first half of 2026, coinciding with the closure of over 26,000 companies since President Javier Milei assumed office, including notable establishments such as the tyre manufacturer Fate. Caputo argues that the government’s criticism regarding the decline in industrial output fails to acknowledge that the sector was already in distress, even after receiving considerable backing from prior administrations, which included energy subsidies and what he referred to as “the subsidies of we the Argentine people,” who had excessively paid “like fools” for its products. “Even though people were paying double, triple, or quadruple, and even though they were getting energy subsidies, the industry declined by 10%. For all the idiots who talk about the industry,” he said.
Caputo emphasised the “essential” nature of growth in the energy, mining, agriculture, and knowledge sectors, as they represent the “sources of foreign exchange that underpin macroeconomic stability.” This influx of dollars is crucial, given that their scarcity has been central to Argentina’s recent economic turmoil. He stated that the wealth generated by these sectors would ultimately spill over into the broader economy. Caputo’s remarks were not well received by Rapallini, the leader of the Argentine Industrial Union. “These are not the kind of statements that foster the dialogue so desperately needed to move this country forward,” he said Thursday in an interview, referring to the Economy Minister’s remarks.
Rapallini stated that the UIA has been emphasising “issues that affect competitiveness,” which encompass taxes, labour costs, infrastructure, and access to financing. He stated that, from his perspective, backing industry is not “incompatible with defending macroeconomic stability.” He also called for acknowledgement of “industrial entrepreneurs who invest in innovation and exports.” And “Argentina needs a competitive industry that is integrated into the global economy and capable of exporting,” he said. “We’re not asking for special treatment, nor are we asking for currency devaluations; we’re asking for greater competitiveness and a level playing field.”