Argentina’s new president did not need to wield a chainsaw as menacingly as he did before the campaign to suddenly shake up his country’s and Galicia’s fishing industry. Changes Federal Fisheries Law Recommended by ultraliberal executive Javier Milei Caused an earthquake in the last 72 hours Amazing fishing on both sides of the Atlantic. The possibility of “liberalizing” the sector and launching international bids to auction fishing licenses and quotas threatens to undermine legal security and the investments made by Galician companies here, in both ships and facilities. In fact, if the plans, called the Omnibús Law, are implemented, companies operating in the South American country are expected to generate more than €420 million in business.
The “bombshell” that angered employers, crews and the Argentinian navy was dropped this week, just days after the imposition of a tariff that multiplies the tax on the sector’s exports to 15% of the value of the goods. The new measure was included in the Law on Bases and Starting Points for the Freedom of Argentines, and the Milei Government included a number of amendments and repeals to various articles of fisheries legislation; In short, this will mean selling permits. and quotas to the highest bidder, without regard to the ship’s flag, the labor of crew members, or investments or historic catches in the fishery.
If the proposal is accepted, the income statements of Galician fishing companies operating in the country will be in serious jeopardy, according to the latest available data. These would be in total Sales of more than 420 million euros and catch of at least 60,000 tonnes of hake, squid and shrimpAlthough among these three species, the first species is the only one included in the quota system.
These are the figures corresponding to the subsidiaries of the companies, the most exposed of which is Iberconsa. Company led by Alberto Freire Hake has almost 15% of its quota This is the maximum amount allowed in the country, but this possible legislative revolution will also affect Nueva Pescanova, which has traditionally relied on the good performance of the fishing area and Argenova to balance the group’s global accounts.
Others have been added such as Grupo Profand, Vieirasa, Gandón (owner of Pesquera Cruz del Sur, previously shared with Fandicosta), Videmar or Wofco, which today is the fourth largest fishing company in Spain and owns 45% of Conarpesa. They are the main companies that catch both hake and shrimp in Argentina.
Although the main groups of the local sector had already expressed themselves through statements and various Argentine media on Thursday, they did so yesterday in partnership with Intercamaras. The association, which brings together eight employer unions from across the sector, issued a statement expressing its rejection of the reform. Note that the industry was not consulted for these changes, which it promises will “make an impact”.
In the opinion of Inter Cámaras, project “puts fishing past aside, investments made and the Argentinian workforce employed.” “The magnitude of the changes intended to be implemented requires the direct involvement of interested parties,” he summarizes.
Milei, however, remains silent about the controversy. She “manifested” herself only veiledly on her official account on the social network
Change in the rules of the game
In Galicia, companies are keeping quiet about what might happen and are relying on different commissions and the country’s two Chambers to analyze the proposal. Omnibus Law Those who put the brakes on will be discussed in Congress on January 25. Of course, for now, they agree with the thoughts of their colleagues and partners on the other side of the pond.
Xunta, on the other hand, rebels against “these recent actions of Javier Milei” and the “strong concern” this has created in the industry. Although he is the leader of the party ruling Xunta, Alberto Núñez FeijooHe praised the Argentinian ultraliberal, From the Consellería do Mar, they believe that both the export tariffs and the proposed changes in legislation have caused “the rules of the game to change almost overnight.”
“fishing relations Argentina They are extremely important for the Galician fleet as Galicia exceeds 300 million imports in 2022.The Ministry reminded the questions from this medium and added that Galician companies created nearly 4,800 jobs here.
“We think that balanced and progressive decisions are necessary,” insists Mar, “and we call for dialogue to defend the interests of Spanish companies, mostly from Galicia, and to stop these harmful decisions.”