Fuel Shortage Solved? & more – 9th Nov 2023

¡Buenos días from The Springs! This is the Rorshok Argentina Update from the 9th of November twenty twenty-three A quick summary of what's going down in Argentina.

For the most part, regarding the fuel situation, everything seems to have gone back to normal. Last week, the government imported ten tanker ships to ease the shortages, and Economy Minister Sergio Massa published a recorded message saying that the fuel scarcity had been solved.

That said, the state-owned oil giant, YPF, as well as other fuel players, increased gas and diesel prices by almost ten percent after the government’s price freeze deal with fuel producers expired on Tuesday the 31st of October. As you may recall, the prize freeze followed a twelve percent adjustment that occurred right after the primary elections and the subsequent devaluation of the local currency.

In order not to add fuel to the fire, the Economy Minister postponed a liquid fuel tax hike, which means prices shouldn’t shoot up anytime soon. He’s also seeking to renew the price freeze deal until February, but negotiations will begin in the next few days.

As the run-off draws near, the election is the one topic on everyone’s mind. Which is why it’s not surprising that Buenos Aires’s Pride March festivities became a political platform. On Saturday, the 4th, thousands of people paraded from Plaza de Mayo to the Congress, celebrating the LGBTQ+ community while also calling for the defense of the rights won over recent decades. Many participants opposed libertarian presidential candidate Javier Milei’s policies, accusing him of potentially restricting human rights, including access to abortion.

While June marks Pride Month worldwide, Argentina celebrates it in November for two reasons: First, the founding of Nuestro Mundo, the first gay political organization in Latin America, took place this month. Second, the weather, which is generally more pleasant during the Spring.

Speaking of the run-off, the two candidates keep sharing proposals and revealing plans, even if some of those contrast with previous campaign promises. For example, Sergio Massa mentioned he wants to eliminate currency restrictions at the end of twenty twenty-four if he wins, a promise most candidates had made as well, but he’d left out of his until now. He explained that a strong anticipated harvest, significant exports and reduced debt payments in twenty twenty-four would boost Argentina’s international reserves, allowing for the removal of currency restrictions.

During an interview on TV, he also clarified that the current Vice-President Cristina Fernández de Kirchner will not be part of his future government or Cabinet.

Another promise is the state funding for the Argentine film industry. He said so while speaking at the Mar del Plata International Film Festival, where he argued that Argentine cinema is crucial for preserving the country’s cultural identity and suggested that streaming platforms should contribute to local productions.

These promises make sense, as a group of prominent film professionals endorsed Massa and criticized Milei and his party, stating that their proposals jeopardize democratic coexistence and the principles of Argentina’s National Constitution.

Speaking of campaign promises that contrast previous ones, Milei distanced himself from one of his most controversial proposals – the idea of an “organ market” in Argentina. However, Diana Mondino, a key figure in Milei’s Party La Libertad Avanza, sparked a fresh debate this week. Milei had previously advocated for treating organs as a free and unregulated market, and Mondino clarified that her perspective differs, suggesting that a market involves transactions without necessarily implying a price.

She called for reforming the law and regulating organ donation and for a more proactive approach to organ transplants. She also raised concerns about the impact of excessive regulations on innovation and growth in various sectors.

On that note, Milei also made new campaign promises, including plans to privatize Argentina’s train service if he becomes president. He also pledged to end state subsidies for utility prices, arguing that the private sector could manage these services more efficiently than the state.

The Argentine train service is currently under the management of the Ferrocarriles Argentinos State Company. The government had privatized train services in the mid-nineteen nineties but later returned them to state control in twenty fifteen.

If you want to hear more about the proposals, you can tune into the presidential debate this Sunday, the 12th. The debate will cover six thematic areas, divided into two blocks: the first block includes economics, education and health, and foreign relations, while the second block focuses on production and employment, security and human rights, and democratic coexistence.

Since we mentioned human rights, the government condemned the Israeli attack on the Jabalia refugee camp in the Gaza Strip, calling it a violation of international humanitarian law and emphasizing the need to protect the civilian population. This statement marked a shift in Argentina’s position on the conflict, as the government had previously been supportive of Israel’s right to self-defense.

The release of this statement led to pushback from some Jewish groups and from presidential candidate Sergio Massa, who distanced himself from the government’s position.

This topic is quite polarizing in Latin America, with some governments, like Bolivia, breaking off relations with Israel, while others, like Paraguay, Uruguay, and Ecuador, tend to show more solidarity with Israel.

Moving on, we have good news coming from the Riachuelo River: the days of the notorious stench are now behind us. Once plagued by pollution and industrial waste, the river, which flows through the metropolitan area of Buenos Aires, has undergone a dramatic transformation, and is now open for tourism.

This revitalization effort has led to the creation of a picturesque waterway featuring coastal edges adorned with local vegetation, trees, water plants, fish, and birds. This development will allow boat services to connect the Delta with Quilmes and La Boca.

In other environmental news, the Supreme Court has given the green light for oil exploration off the coast of Mar del Plata City, which is located some 400 kilometers southeast of Buenos Aires City. The court rejected protective appeals from Greenpeace and other organizations, allowing seismic exploration and oil exploitation 300 kilometers off the coast in the Argentine Sea.

Despite many efforts to prevent the drilling, the government expects to benefit from this project, especially with international oil prices going up.

In the meantime, heavy rains and flooding in Argentina, Paraguay, Uruguay, and Brazil have claimed three lives and forced thousands to evacuate their homes. Attributed to the El Niño phenomenon, this weather could persist until the start of twenty twenty-four.

This is directly tied to the conditions that affected the Iguazú falls last week, and the high water levels in the Río de la Plata that authorities warned about in the last few days.

Speaking of forecasts, after a challenging year for Argentina’s agriculture sector, twenty twenty-four is looking more promising with projections of over thirteen billion dollars in export growth. Favorable weather conditions are expected to increase exports of main grains and their by-products, although international price drops might limit the impact.

A report by Fundación Capital estimated that agricultural exports could reach over thirty-two billion dollars, leading to improved foreign exchange earnings and increased revenue from export duties.

Back to Mar del Plata for a minute, the thirty-eight edition of The Mar del Plata International Film Festival is currently running. Until Sunday the 12th, filmmakers and film lovers from around the globe will participate in various activities, including talks and screenings. This year, the theme is all about celebrating democracy, and organizers of the festival will screen a wide range of films from international and Argentine filmmakers, including those previously censored.

Before we go, remember that the 20th of November is a holiday. Yes, despite rumors that the government would move it due to the run-off taking place on Sunday the 19th, Monday will remain a holiday to commemorate National Sovereignty Day.

This day commemorates the Battle of Vuelta de Obligado, during which the Argentine forces confronted a powerful Anglo-French fleet that attempted to navigate a major waterway in Argentina without the government’s authorization.

And that's it for this week!

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