Friday, November 21 st, 2025
1. Removal of withholding taxes on conventional oil
This week, the Ministry of Economy announced the removal of withholding taxes on conventional crude oil. The aim of this measure is to ease the tax burden on the sector, with a particular focus on eliminating the export duty (D.E.), which currently stands at 8%. The government estimates that the tax reduction will attract new investment, as well as reviving activity in mature basins and preserving jobs for workers in the sector. The governor of Chubut, a leading province in hydrocarbon production, was the first to sign this memorandum of understanding after a meeting with Chief of Staff Manuel Adorni and Interior Minister-designate Diego Santilli. This measure had already been requested by the producing provinces of Patagonia in order to sustain activity.
Ámbito (Energy Report): El Gobierno acordó con Chubut la eliminación de las retenciones al petróleo convencional
2. Quirno travels to a G20 summit with several absences
This year, the G20 Summit is being held in South Africa. However, following the United States’ decision to reject the historic final communiqué of the G20, there was an immediate impact on the delegations that will participate tomorrow in Johannesburg, South Africa. This is an atypical G20, with the absence of the United States, as well as the presidents of China, Russia, and Mexico. In this regard, Javier Milei announced that he will not attend the G20 Summit, following the position taken by the US. It has been confirmed that the current Argentine Foreign Minister, Pablo Quirno, will attend in his place. In addition, Pablo Quirno met with Chinese Ambassador Wang Wei this week. The meeting with the Chinese diplomat at the Palacio San Martín was kept low-key, with no official statement from the government.
3. October recorded a trade surplus of US$800 million
The National Institute of Statistics and Censuses (INDEC) published its report on October’s trade balance, which showed a surplus of US$800 million. Compared to October 2024, this represented a reduction of US$112 million. This figure marks the 23rd consecutive month of trade surplus. Primary products, such as soybeans, drove this positive balance. At the same time, imports grew 16.9% compared to the same month last year. The increases were evident in motor vehicles, which rose 69.2%, and in consumer goods, which grew 48.8% and reached a historic high. Capital goods also stood out with a 20% increase, and there was significant growth in purchases through courier services, exceeding US$100 million per month. According to sources, this is due to an exponential influx of electronic products, clothing, and toys. The latter is due to easing measures, combined with the appreciation of the exchange rate, which is putting increasing pressure on the central bank’s reserves. The most significant surpluses were achieved with the ALADI countries (USD $609 million), India (USD $373 million), and the USMCA bloc (United States, Mexico, and Canada), with a positive balance of USD $314 million.
Infobae: La balanza comercial arrojó un superávit de USD 800 millones en octubre, el menor en cinco meses
4. The government announced a financial surplus in the public sector
The Ministry of Economy reported on Monday that in October it achieved a primary fiscal surplus of AR$823.925 billion, with a financial surplus of AR$517.672 billion, after paying interest totaling AR$306.253 billion. Thus, the National Public Sector (SPN) accumulated a financial surplus of approximately 0.5% of GDP (primary surplus of approximately 1.4% of GDP) in the tenth month of the year, maintaining the fiscal surplus as a fundamental government program and in line with the year-end target of 1.6% of GDP, agreed with the International Monetary Fund (IMF). To achieve this IMF target, an additional 0.2 percentage points of surplus would need to be achieved in November and December, taking into account that December is when bonuses are paid and fiscal margins narrow. The statement failed to mention tax collection performance, which was affected by the decline in withholdings, registering a sharp drop in October due to the official decision to temporarily suspend their collection on a quota of US$7 billion in exports, with the aim of accelerating foreign currency settlement and generating a greater supply of dollars in the market. As a result, AR$257.1 billion was collected, representing a year-on-year decline of -55.3%.
La Nación: El Gobierno confirmó que en octubre tuvo superávit financiero por $517.672 millones
5. Amendment to the Ministries Act: changes and setbacks
Last Wednesday, Javier Milei signed the DNU (Decree of Necessity and Urgency) that reorganizes competencies and reverses transfers: the National Registry of Persons (RENAPER) once again reports to the Ministry of the Interior, the Secretariat of Sports is also transferred to the Ministry of the Interior, while tourism and the environment are unified and report to the Chief of Staff, Manuel Adorni. This strategic reorganization strengthened Santilli’s position, as the minister managed to get the government to reverse a decision that had caused unrest among his colleagues and political allies. In addition, this move strengthens him in the negotiations he is conducting with the provinces. Government sources mention that there may be a further cabinet reshuffle after the departure of Patricia Bullrich (Security) and Luis Petri (Defense) is formalized with the legislative change on December 10.
El Cronista: El Gobierno modificó la Ley de Ministerios y Santilli recuperó dos áreas estratégicas para Interior