Major US subsidiary considering withdrawal

On my flight down over the weekend my seatmate happened to be the executive of the Argentinian subsidiary for one of the US firms with the largest presence down here. No names or industries will be mentioned, I realize that that diminishes the credibility of this post, but I don't want to make anyone's life more miserable than it already is.

We were bemoaning the decisions of the Kirchner administration over the past year and I explained the exit plan for my family. [Didn't I mention previously that we're leaving as soon as my wife's immigration visa is approved?] He told me about how frustrated the execs at the parent corporation are that its impossible to create accurate financial forcasts and that they can't believe they are unable to regularly pull profits out of Argentina. The Argentinian sub gets all the required approvals, but more often than not the central bank cancels dividend payments headed to the US. So they're trying to figure out how to move the whole operation to another Mercosur country, then they'd only have to deal with the huge mess of getting their goods imported into the country.

So there you go Kristina, Moreno, et al: the fruits of your policies will be more than just reduced foreign investment, but companies actually leaving Argentina for more hospitable locales. More than just a few banks, companies that manufacture millions (billions?) of pesos worth of goods.

According to a German engineer I know who has had regular dealings here with a European based company.....he sees the biggest problem to progress in this country are the unions.

I am not surprised of what you heard. I recently talked to some VCs that wanted to do business in Argentina. Now they are steering clear in favor of Chile and Brazil; even Paraguay. Who in the right mind wants to do business in Argentina when there are no guarantees of any sort from the government?

On a similar note, I read on August 2, Clarin online edition that Evo kicked out Coca-Cola from Bolivia citing health reasons and McD is pulling out because of bankruptcy.

--J

Yes, there are guarantees, primarily the one where operating your business will be an administratively-royal PITA.

I agree Unions are a very big issue, but the Central Government is the biggest problem we face.

Yes I can well imagine....just normal day living here is an administrative pain in the bum.

Truth be told it's a bloody nightmare.

That's why some of us just have front row seats