October 8th, 2021
1. Congress: government did not achieve the necessary quorum to deal with the Frontal Labeling Law
Frente de Todos block of representatives, headed by Máximo Kirchner, did not manage to reach the quorum to debate in the Chamber its own agenda, which included the project of Frontal Food Labeling, that already has been approved by the Senate and seeks to mark with a black octagonal seal the packages of products containing excess sugars, fats, calories or sodium. In the negotiation between the groups, Juntos por el Cambio presented an alternative agenda which included, in addition to the labeling initiative, the sheep promotion law together with the summons of the commissions so that, in the course of the next two weeks, the debate of the single ballot law, the reform of the rent law, the educational emergency and the Budget 2022 would begin with the presence of the Minister of Economy Martín Guzmán, but the ruling party did not accept. Finally, with 122 legislators in the chamber, 7 were missing to achieve the quorum and the session had to be adjourned. It is worth mentioning that during Wednesday afternoon, the President of the Lower House, Sergio Massa, reached an agreement in principle with the heads of the opposition blocks to deal with the Frontal Labeling Law on Wednesday 13 in a session with a consensual agenda.
La Nación: Sin quorum, el Frente de Todos amenaza con aplicar el etiquetado frontal
Infobae: Ley de Etiquetado Frontal: cuáles son los principales puntos del proyecto que no tuvo quórum para ser debatido en Diputados
2. The Central Bank modified the mechanism for advance payment of imports
Through Communication A 7375,the Central Bank of Argentina (BCRA) modified the mechanism for the advance payment of imports with the purpose of balancing payments with the goods entered into the country. It will be in force until October 31 of this year and will only apply in those cases in which imports are being made for a higher value than that which has entered the country. The measure ordered by the BCRA’s Board of Directors is in addition to the one announced by the National Securities Commission (CNV), which further limited the operation of the Bolsa dollar by establishing a limit of 50 thousand nominal dollars per week for the sale of negotiable securities denominated in dollars and issued under local law with settlement in foreign currency, in the PPT segment, considering both MEP and Cable operations. The BCRA continued today to sell dollars from its reserves to supply demand in the wholesale market and maintain the official exchange rate. In September, the deficit balance between purchases and sales in the Foreign Exchange Market reached u$s 950 million.
Cronista: Más restricciones: limitan el pago anticipado de importaciones para frenar la salida de dólares
Clarín: Nuevo cepo sobre los dólares financieros e importaciones: cuáles son los nuevos límites
3. Supreme Court Justice Elena Highton de Nolasco resigns
On Tuesday, by a letter sent to the President of the Nation Alberto Fernández, Supreme Court Minister Elena Highton de Nolasco submitted her resignation from her position as of November 1. This opens a complicated path for the Government, since it would have to obtain the approval of two thirds of the Senate to approve Highton de Nolasco’s replacement. It is worth mentioning that the ruling party has already faced a similar scenario when it failed to obtain the necessary votes to appoint the new Attorney General. Supreme Court Justice Ricardo Lorenzetti stated that “the Court will continue to operate normally” and sought to minimize the existence of internal disputes.
4. Precios Cuidados: government renews the program that seeks to contain prices
The agreement that the National Government maintains with the industry with the purpose of keeping the prices of those mass consumption products of reference frozen will be renewed today. In order to contain inflation in the midst of the electoral scenario, the Secretariat of Domestic Trade also informed that it will only authorize increases of “one digit”. In addition, the portfolio led by Paula Español announced that it will reinforce price inspections in supermarkets and will deepen investigations on the price of inputs. This will be the last quarterly increase of the year of Precios Cuidados. The basket, which today has 700 items, had authorized increases of 16.2% on average between January and July.
Clarín: Pese a los reclamos de las empresas, el Gobierno se prepara para renovar Precios Cuidados casi sin cambios
5. The trade union closed its union negociations with an increase of 42%
The Federación de Empleados de Comercio y Servicios (FAECYS), led by Armando Cavalieri, signed a salary review with the chambers of the sector. It consists of a fixed amount of AR$ 4,000 in August and a 9% increase in November, which will raise to 42% the annual increase of 32% agreed last April. It also includes a review clause in January 2022. The agreement reached will allow the basic salary of the mercantile activity to be close to AR$ 80,000. According to a press release from the union, the purpose of this review is “to neutralize the inflationary onslaught and the oscillations of the weak economy”.