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Strong competitiveness loss hits Patagonian fishing industry

18 Apr 2017

The removal of reimbursements from Patagonian exports, which offset the effect of eliminating retentions, coupled with an accumulated inflation of more than 50 per cent since December 2015 and the stability of the dollar, put the competitiveness of the fishing industry of the Argentinian Patagonia at risk.

In this context and thanks to the extraordinary volumes of shrimp catch recorded, it seems to be the only pillar of a shaky industry.

According to Revista Puerto, fishing analysts say that in the last 16 months, the rise of inflation and the stability of the dollar price wiped out the effect of exchange rate competitiveness obtained by the strong devaluation faced in December 2015.

And what increases the concern of the sector is that the implementation of new measures that can help the activity regain competitiveness has not been envisioned.

In Patagonia, in particular, tariffs have doubled, and the removal of export duties was absorbed almost entirely by the decree that repealed reimbursements, complicating the situation of many Patagonian companies.

"Only the extraordinary volumes of shrimp caught have prevented a collapse, but a year when the recruitment of the species fails, there would be a true fatal trend in the sector with consequences that are not only economic but also causing strong social impact. Without the 'orange gold' the Patagonian fishing industry does not seem to have much future," says an article published in Revista Puerto.


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