Argentine Industrial Union (UIA) President Martín Rappallini fired back at Economy Minister Luis Caputo after the minister harshly criticized local industries over the cost of their products.
Rappallini said those kinds of comments don’t “foster the dialogue so desperately needed” at a time when industrial activity is in decline.
Caputo made the remarks last Wednesday while defending his economic plan, pointing to growth in the energy, mining, agriculture, and knowledge sectors even as local manufacturing faces one of its worst downturns in recent years.
According to consultancy firms, manufacturing dropped 1.8% in the first semester of 2026, with over 26,000 companies shutting down since President Javier Milei took office, including historic ones like tire manufacturer Fate
According to Caputo, criticism of the government over the slump in industrial output overlooks the fact that the sector was already in crisis, despite having received substantial support under previous governments, including energy subsidies and what he called “the subsidies of we the Argentine people,” who had overpaid “like fools” for its products.
“Even though people were paying double, triple, or quadruple, and even though they were getting energy subsidies, the industry declined by 10%. For all the idiots who talk about the industry,” he said.
Caputo said it was “essential” for the energy, mining, agriculture, and knowledge sectors to grow because they are the “sources of foreign exchange that underpin macroeconomic stability,” bringing in much-needed dollars — the lack of which has been at the heart of much of Argentina’s recent economic turmoil.
He said the wealth generated by these sectors would eventually spill over into the rest of the economy.
Rapallini calls for dialogue
Caputo’s comments did not go down well with Rapallini, who heads the Argentine Industrial Union (UIA).
“These are not the kind of statements that foster the dialogue so desperately needed to move this country forward,” he said Thursday in an interview with Radio Mitre, referring to the Economy Minister’s remarks.
Rapallini said the UIA has been highlighting “issues that affect competitiveness,” including taxes, labor costs, infrastructure, and access to financing. He added that, in his view, supporting industry is not “incompatible with defending macroeconomic stability.”
He also called for recognition of “industrial entrepreneurs who invest in innovation and exports.”
“Argentina needs a competitive industry that is integrated into the global economy and capable of exporting,” he said. “We’re not asking for special treatment, nor are we asking for currency devaluations; we’re asking for greater competitiveness and a level playing field.”
