Argentinian President Javier Milei speaks during the opening of the 144th Ordinary Session of the National Congress in Buenos Aires on Sunday. Milei addressed the nation on key initiatives for his administration. Photo by Ignacio Roncoroni/EPA
March 5 (UPI) — Argentina’s main business organizations issued an unusual public warning to President Javier Milei’s government, calling for “respect” for the private sector and warning about the difficult situation facing the country’s industrial base.
The statements followed remarks by Milei during the opening of the legislative year in Congress, when the president sharply criticized industrial business leaders and accused them of benefiting for years from a protectionist and corrupt economic system.
The reactions came mainly from the Argentine Industrial Union, known by its Spanish acronym UIA, and the Argentine Business Association, or AEA, two of the most influential groups representing the country’s private sector.
Under the premise that “without industry there is no nation,” the UIA defended the productive sector in a statement responding to the president’s comments and expressed concern about the situation of factories across several provinces.
“In this stage of transformation, we want to be clear: respect is a basic condition for development. Respect for those who produce, invest and create jobs across the country. Respect is the starting point to rebuild the confidence Argentina needs, both domestically and internationally,” the organization said, according to a report by Argentine newspaper Perfil.
The UIA also said business leaders should not be blamed for economic distortions accumulated over decades and called for clear rules to guide the transition toward a more open economic model.
Industrial representatives warned that many companies, especially small and medium-sized firms, are facing a difficult period marked by falling consumer demand, heavy tax pressure and financial constraints.
The group said Argentina’s industrial sector produces about 19% of the country’s gross domestic product and contributes 27% of national tax revenue. It also generates 19% of formal employment, with about 1.2 million workers, and supports another 2.4 million indirect formal jobs throughout the production chain.
The AEA, which represents owners of some of the country’s largest companies, adopted a more moderate tone.
The organization acknowledged progress by Milei’s administration in stabilizing the economy, but said relations between the state and the private sector must be based on respect and cooperation to facilitate new investment.
Despite the critical tone, the business statements avoided a direct confrontation with the government and stressed the need for cooperation, digital outlet Infobae reported. Both organizations said economic stabilization must be accompanied by policies that encourage productive investment and support the industrial sector.
Although much of Argentina’s business community initially supported Milei’s economic reforms, the episode marks one of the first public criticisms by major companies since he took office.
A growing number of factory closures and a slowdown in industrial activity have begun to trigger concerns within the private sector.