ARGENTINA: Heatwave & more – 1st Feb 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 1st of February twenty twenty-four A quick summary of what's going down in Argentina.

Things are getting heated, and no, we’re not talking about politics. A big heatwave is gripping central and northern Argentina, with temperatures soaring as high as forty-one degrees Celsius (106 Fahrenheit) in some regions. The National Meteorological Service issued a red alert in twenty provinces, including Mendoza, Neuquén, Río Negro, San Juan, and Buenos Aires. Authorities are urging residents to stay hydrated and avoid prolonged sun exposure, particularly between ten a.m. and four p.m.

As if that wasn’t dangerous enough, an uncontained wildfire has burnt down some 600 hectares of Los Alerces National Park in the Chubut province. Authorities even declared the situation as “out of control” given the fierce winds and scorching temperatures that exacerbate the issue.

Provincial and national fire brigades are trying to shield nearby towns like Esquel and Trevelin from the advancing flames, but the fire is incredibly hard to contain. Firefighters are facing challenges in aerial suppression and visibility, prompting road closures within the park and caution along Route 71.

This is a threat to the park’s UNESCO-designated native forest areas — and while the record-high temperatures are surely part of the issue, the provincial governor suspects the fire was ignited intentionally. Allegations point to the indigenous group Resistencia Ancestral Mapuche, or RAM. There’s always tension between the local authorities and the group, which advocates against land encroachment and logging.

This brings attention to President Milei’s plans to overturn the Fire Management law, which safeguards natural environments against deliberate or unintended fires, prohibiting the sale of scorched land for up to sixty years to deter exploitative actions. This, however, was not included in the mega-decree or the ‘Omnibus law.’

And speaking of the Omnibus law, its debate was pushed back once again. First, to Wednesday the 31st, when after over twelve hours of debate, the Chamber of Deputies decided to adjourn until Thursday noon to vote. Negotiations ran parallel throughout the session, but disagreements persisted regarding issues like resistance to authority, legitimate defense, and privatization.

One of the most pressing issues awaiting resolution by the government revolves around the demands of provincial governors. Seeking redress for financial setbacks resulting from the elimination of duties like the income tax, they advocate for a portion of the PAIS tax revenue to be directed to their provinces. This tax applies to certain foreign currency transactions, and while the government has yet to agree to this request, they decided to extract any references to the PAIS tax from the Omnibus law, opting instead to address it separately in future discussions.

That shouldn’t be a huge problem, though, as there were many concessions, modifications and dilutions prior to the session. Last week, Economy Minister Luis Caputo announced the removal of 280 articles predominantly linked to fiscal matters. This includes the withdrawal of tax and pension reforms, alongside provisions affecting export duties and income taxes. Plus, they are maintaining the provisions for privatizing numerous public entities, but excluded the energy company YPF from those privatization efforts.

Meanwhile, a recent court ruling declared the president’s attempt to enforce labor reform through a decree unconstitutional. The court’s decision, announced via its website, follows the suspension of Milei’s proposed labor changes initiated on the 3rd of January, prompted by a challenge from the influential CGT labor union, which led a nationwide strike against the reforms.

Critically, the judges underscored that the government could have pursued the reform through Congress instead of resorting to urgent executive orders. Milei’s options now include appealing to the Supreme Court or navigating the legislative process.

On that note, a court suspended the president’s proposed repeal of the Ley de Tierras or “Land Law”, a move intended to prevent the unlimited purchase of land by foreigners. Federal Judge Ernesto Kreplak, responding to a lawsuit filed by the Center of Malvinas Islands Ex-Combatants, temporarily halted Milei’s repeal efforts, deeming them potentially unconstitutional and harmful to national sovereignty and territorial integrity.

The judge’s decision underscores concerns that repealing the law could exacerbate foreign ownership of land and water, sparking a sovereignty conflict. Milei’s administration must now provide a detailed report justifying its repeal attempt, with the case slated for review by the Federal Appeals Court following the suspension.

With all this going on, the government found the time to hit at the repeal of the abortion law in the near future. While addressing reporters during a press conference, Presidential Spokesperson Manuel Adorni acknowledged the president’s inclination toward repealing the law but underscored that the current economic chaotic situation remains the top priority.

The law was enacted during Alberto Fernandez’s term and permits abortion up to week fourteen in all cases. Milei’s critical remarks on feminist movements and abortion during his speech at the World Economic Forum in Davos further fueled speculation about the administration’s stance on reproductive rights.

Speaking of Davos, the Financial Times published a follow-up piece titled “The global business elite is infatuated with Javier Milei.” The article discusses his bold speech at the World Economic Forum, where he criticized various political movements and called for limited government intervention in individuals’ lives. It also looks into Milei's pro-business stance and how promises of austerity measures have garnered attention and support, even from entities like the IMF and JPMorgan.

To read the full article, follow the link in the show notes!

In other news, supermarkets and convenience stores have agreed to implement a twenty percent discount on twenty essential basket items for sixty days. The decision comes amid a significant surge in prices and despite Milei’s prior criticism of price agreements and regulatory interventions.

If you are planning to buy certain items abroad, we have good news. The government wants to increase the monthly limit for small imports via courier services back to 3,000 dollars from the previous 1,000. This applies to individuals but also industrial small and medium enterprises that need access to essential parts and supplies.

It’s not only packages that are entering the country, though. In the first half of January, Argentina experienced a notable surge in foreign tourism, with nearly half a million visitors arriving. This marks a substantial thirty-four percent increase compared to the previous year.

According to data from the Interior Ministry, these tourists contributed to a total expenditure of more than 300 million dollars during their stay.

Since we brought up tourism, remember that the Carnaval weekend is coming up, a perfect opportunity to visit new places. Both the 12th and the 13th of February are national holidays, and places like Gualeguaychú in the Entre Rios province or the city of Corrientes in northeastern Argentina will host lively street parties and parades featuring costumes, music, and dancing. You may also come across performances and cultural events in Buenos Aires, but the most famous Carnival parade in Argentina takes place in Gualeguaychú.

If your idea of enjoyment leans more towards watching a match than dancing in the street, there’s good news too. The Argentine football season kicked off on the 25th of January with the Copa de la Liga twenty twenty-four. The tournament format features twenty-eight teams divided into two groups, playing single matches against each other, with top performers advancing to the quarterfinals.

If you miss watching the National Team, you’ll have to wait a little bit longer. The Argentine Football Association just confirmed two friendlies against Nigeria and Ivory Coast. These will take place in Hangzhou and Beijing between the 18th and the 26th of March, making their final matches before preparations for the twenty twenty-four Copa América.

The good news? Coach Lionel Scaloni reassured fans of his continued commitment to the role during an interview with Sky Sports Italia, putting to rest concerns raised in November after he hinted at the possibility of resigning.

Aaaaaand that's it for this week. So you listen to us, ideally almost every week, but we don't actually know each other. Here's a chance to fix that. On Monday the 8th of April there is a total eclipse of the sun in Dallas, Texas, in the US. There will be events organized the whole weekend before. So on the off chance you can get here, send us an email or check the show notes for more information.

¡Nos vemos la próxima semana!