ARGENTINA: Non-residents Fees & more – 5th Dec 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 5th of December twenty twenty-four. A quick summary of what's going down in Argentina.

The government announced that non-residents will now be charged fees for public university education and healthcare services.

The executive is framing the move as a way to fund universities, which critics argue will have a minor impact given the small proportion of foreign students. Public universities have nearly 80,000 foreign students, who make up 4% of undergrad enrollment. On the other hand, supporters say it’s fair since many graduates return to their home countries after completing their studies.

Regarding healthcare services, this move is not entirely new. Provinces like Salta, Mendoza, Santa Cruz and Jujuy had already started charging non-resident foreigners. It’s likely that the scheme will be similar in other places, with non-residents paying for most services, with the exception of emergencies. Manuel Adorni, the Presidential spokesperson, explained that this change aims to fund institutions and reduce the strain caused by medical tourism. The one province that is pushing to keep it free is Buenos Aires.

Additionally, the government plans stricter immigration policies, including deportation for crimes like document fraud or attacking democratic institutions, and harsher penalties for reentry after expulsion.

Another healthcare-related measure: Starting the 1st of January, twenty twenty-five, the country will switch exclusively to electronic prescriptions for medications, ditching paper entirely—except in areas with limited connectivity. The government says this move will simplify the process, boost transparency, and crack down on fraudulent prescriptions. Pharmacies and platforms will access prescriptions through a digital repository, ensuring only authorized requests are processed. Paper prescriptions issued before the end of twenty twenty-four will still be valid during their usual timeframe.

Luckily, the government has delayed the removal of electricity and gas subsidies, pushing the start date from December twenty twenty-four to June twenty twenty-five. The plan will now include a gradual transition period and a system similar to social tariffs to focus subsidies on those who need them most.

This is good news considering purchasing power has plummeted to levels not seen since the two thousand one economic crisis. A University of Buenos Aires report revealed that the minimum wage has lost almost 30% of its value over the past year, marking the steepest annual drop since the early two thousands.

On that note, gas is not becoming any more accessible. On Sunday the 1st, fuel prices went up again, with increases between 2% and 3%. A combo of a 2% currency devaluation, higher international crude prices, and a tax adjustment triggered this hike—YPF’s second since October. A liter of regular gas in Buenos Aires now costs $1,100 pesos (about one dollar at the parallel exchange rate).

Speaking of gas, the government is gearing up for a major change at gas stations: soon, drivers will be able to pump their own fuel. The change could become official by decree in the next two weeks and also includes plans to boost electric vehicle charging options.

The government is also deregulating aviation, and has authorized four international airlines from Chile, Peru, the Dominican Republic, and Paraguay to begin operating in the country. These new carriers—JetSmart Airlines Perú, Sky Airline, Arajet, and Paranair—will open up new routes across Latin America, including connecting smaller cities like Bariloche and Córdoba to international destinations.

By the way, Flybondi, Argentina’s low-cost airline, faced significant backlash over the weekend after canceling seventy flights. The airline is currently ranking among the worst globally for cancellations and delays, with passengers experiencing long waits and poor communication.

Back to the topic of cars, car manufacturers have been reducing prices on certain models since the government removed the PAIS tax on imports. Toyota announced a price cut of up to 7% on its imported models. Ford also lowered prices by around 1%. However, many potential buyers are holding off until the new year, hoping for further price drops and the added value of purchasing a twenty twenty-five model.

There are also updates regarding public transportation. Buenos Aires is modernizing its Subte metro payment system, introducing options like mobile phones, debit, and credit cards equipped with NFC technology. This change complements the existing SUBE card system, making fare payments more convenient and flexible. Competition from private payment providers could also lead to discounts and perks for riders, making travel more affordable without increasing state subsidies.

While some sectors are pushing for modernization, others are heading in the opposite direction. President Milei is reportedly planning to issue a decree to eliminate the option for non-binary gender markers on Argentine national ID documents, rolling back a twenty twenty-one policy that allowed individuals to register as X instead of male or female.

Critics see this move as part of Milei’s broader effort to roll back progressive policies, including past measures like banning inclusive language in government and closing the Women, Gender & Diversity Ministry. The repeal could trigger legal challenges and affect thousands of Argentines who identify as non-binary.

Since we’re on the topic of the president, The New Yorker published an in-depth profile of Javier Milei, exploring his provocative style, radical policies, and divisive leadership. Written by Jon Lee Anderson, it paints Milei as both a political disruptor and a polarizing figure in a nation grappling with severe economic struggles.

Check out the link in the show notes to read the piece.

Meanwhile, Milei is pushing a bold plan to attract fifty billion dollars in investment by offering companies long-term tax and regulatory incentives under a program called RIGI. The initiative targets industries like energy, mining, and tech, granting benefits such as tax breaks, tariff exemptions, and the ability to bypass local courts for international arbitration. While several major projects have already applied, foreign investors remain cautious, especially due to the country’s strict currency controls and volatile economic policies.

In other economic news, Argentina’s top two financial trading markets, MAE and Matba Rofex, have agreed to merge into a new entity called A3, which will begin operations in twenty twenty-five. The goal is to create a more efficient and modern market by combining the strengths of both institutions. MAE handles financial instruments like stocks, bonds, and currencies, while Matba Rofex focuses on futures and options for commodities, currencies, and financial assets.

On Monday the 2nd, Arthur Laffer, a key figure in supply-side theory and adviser to Donald Trump, urged Argentina to abolish capital controls immediately, arguing that such measures hinder investment and economic growth. Speaking at the University of CEMA in Buenos Aires, Laffer emphasized that lifting these restrictions would attract foreign investment by assuring investors they can freely repatriate funds. Luis Caputo, the Economy Minister, suggested the restrictions might be lifted in twenty twenty-five, potentially expedited by IMF financial support.

The nation’s sporting scene faces its own challenges on the global stage. Franco Colapinto’s prospects for a twenty twenty-five Formula 1 seat are dwindling as key teams like Red Bull, Alpine, and Kick Sauber have distanced themselves from the Argentine driver. Despite earlier praise from Red Bull’s Christian Horner and Alpine’s Flavio Briatore, both teams have filled their twenty twenty-five rosters with other drivers. Kick Sauber, once a potential option, also chose Brazilian Gabriel Bortoleto. While Colapinto’s early-season performances impressed, recent crashes in Brazil and Las Vegas, along with bad luck in Qatar, have hindered his momentum. His last opportunity to showcase his talent for the upcoming season will be the Abu Dhabi GP from the 6th to the 8th of December

Closing this edition with some more news for sports fans, the multimedia exhibition Diego eterno opened in Buenos Aires, celebrating the life and legacy of Argentine football icon Diego Maradona. Visitors are greeted by a hologram of Maradona, wearing his iconic Albiceleste jersey, inviting them to explore an immersive 800-square-meter showcase. The exhibition features memorabilia, including jerseys and videos, and recreates key moments and spaces from his life, such as his childhood home and the nineteen eighty-six World Cup locker room.

Aaand that’s it for this week! Thank you for joining us!

Do you know that besides the Rorshok Argentina Update, we also do others? Our latest ones are the Arctic Update, about the area north of the Arctic Circle, the Ocean Update, about the 70% of the world covered in salt water, and the Multilateral Update, about the world’s major multilateral institutions. The other ones are all country updates, we have a selection of countries from Africa, Asia, South America, and Europe. Check roroshok.com/updates for the full list, the link is in the show notes.

¡Nos vemos la próxima semana!