UIA President Daniel Funes de Rioja’s Political Alignment and the Growth of Argentina’s Manufacturing Industry

2023-07-04 14:09:49

The Argentine Industrial Union (UIA) confirmed Daniel Funes de Rioja as president of the most relevant manufacturing entity within the local red circle, weeks before the primary elections and thus maintained a clear political line, in favor of center candidates.

The election by single list of the new leadership of the UIA, did not bring major news. The only two multinationals with national capital, Arcor and Techint, control most of the seats on the board of directors, as a reflection of their size in the local productive network.

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The irruption of Sergio Massa as the sole candidate of Peronism managed to drive a wedge into the UIA: “Until Sergio finally went, it was very clear that we were going to support Larreta,” a source from the sector told LPO, adding “that is now divided “. In the manufacturing entity they do not share the extreme proposals of Milei and there are objections with Patricia Bullrich.

The irruption of Massa as the sole candidate of Peronism broke the ranks of the UIA, which until then had been in the column behind the candidacy of Rodríguez Larreta,

On the same day as the UIA election, Funes de Rioja visited the Economy Minister in his office. The businessman publicly congratulated Massa for the unity of Peronism and recognized him for “the process of economic stability achieved.”

In this sense, it is worth remembering the excellent relationship of Paolo Rocca, head of the Techint group, with the management of Massa, after taking over the work on the Néstor Kirchner gas pipeline, which he carried out in record time under the supervision of the state-owned Enarsa.

Beyond the temporary companies, from the Industrial Union they offered a structural vision of the projects in conflict and asked the LPO: “If you have money invested in a country, in factories, technology, would you prefer candidates at the extremes or in the center ?”. The manager added: “It doesn’t matter if the winner is Sergio Massa or Horacio, it’s not about proper names.”

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However, from another point of view, they explained that Massa, minister and candidate at the same time, could be a double-edged sword. “His measures of him as an official can be liked and arouse support, or be unsympathetic and generate rejection by businessmen. Both scenarios are possible,” another executive of the manufacturing entity told LPO.

The UIA brings together the most heterogeneous businessmen, who are crossed -for example- by the debate on the relationship with China. Paolo Rocca is a convinced militant against the Asian power, which competes with him in his core business of seamless tubes. Techint does not welcome the acceptance of the yuan in the domestic banking system, promoted by Massa.

The UIA brings together the most heterogeneous businessmen, who are crossed -for example- by the debate on the relationship with China. Paolo Rocca is a convinced militant against the Asian power, which competes with him in his core business of seamless tubes. For this reason, Techint does not look favorably on the acceptance of the yuan in the domestic banking system, promoted by Massa.

On the contrary, the textile businessman Teddy Karagozian, affirmed in dialogue with LPO that “it is a valid instrument in a world where China is already more important than the US”.

“The dollar as an international transaction currency is the product of the fact that at the time, the Arabs made a deal in exchange for American protection. Today the world has changed and China is already more important commercially than the US,” he added.

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