It can be said that political relations between Argentina and Japan are going through a good moment. In this case, Japanese Foreign Minister Hayashi Yoshimasa was in Buenos Aires earlier this year and met with President Alberto Fernández, Economy Minister Sergio Massa and Foreign Minister Santiago Cafiero.
In addition, Ambassador Yamauchi Hiroshi had prepared rigorous meetings for him with representatives of Japanese companies and members of the Nikkei community in Argentina.
But behind the good diplomatic practices, hides the bad investment climate suffered by foreign companies based in the country, including Japanese ones. Plagued by exchange controls, being prevented from taking their profits out of the country, and permanent rule changes, Japanese companies are on the run.
From 2019 to today, there are nearly 30 left. There were 102 and today there are 70 left, according to sources in the Japanese business sector.
Among others, Banco Mitsubishi, known as Mitsubishi UFJ Financial Group; the Itochu Corporation, which is Japan’s second largest trading company, behind the Mitsubishi Corporation; Sojitz Argentina, which operated in the petrochemical sector; in the miner among others. Panasonic left and the producers of the emblematic Asics sneakers left.
“Argentina thus displays the worst ratios of foreign direct investment received relative to its GDP in the region,” said consultant Marcelo Elizondo, director of DNI.
He gave an example that if the evolution is compared with its neighbors, the result is remarkable: when the 21st century began (2000), Argentina had a stock of FDI in its territory higher than that of Chile, Colombia and Peru (only Brazil and Peru surpassed it), Mexico in Latin America). Everyone comfortably overcomes it today.
And perhaps the best explanation for what is happening, he indicated, comes from the observation that when the 21st century began (in the year 2000) Argentina had 19.9% of total FDI in Latin America, but in 2020 it had only 4.6% of the regional total.
“The trend, therefore, is more concerning than the result of a specific year,” Elizondo said.
And he said that a country that reduces the relevance of international companies in its economy “suffers from technological decoupling, generates less quality employment, exports less, reduces its overall investment and lowers general productivity levels.
Source: Clarin
