On the occasion of the preparatory meetings of the G20 organized this year by Brazil, John Denton, secretary general of the International Chamber of Commerce (ICC), which – at the local level – operates under the structure of the Argentine Chamber of Commerce (CAC).
The global organisation, now led by an Australian-born executive, was founded more than 100 years ago and represents:in 170 countries – to the private sector, helping it to develop an agenda of common interests between businesses, promote free trade and investments, interceding with governments and international organizations.
During his visit to Argentina, the manager had several meetings with the new officials of Javier Milei’s new government with whom he used the tools available to the ICC to fuel international affairs. One of those meetings was with the Minister of Foreign Affairs Diana Mondino to which he expressed “the great “expectations generated by the reforms promoted in the country to improve the business environment”.
Another of the meetings held by the director of the ICC was with the Secretary of Agriculture Fernando Vilella, to whom he proposed the idea of working to connect Argentina with large business communities, especially international platforms. Mainly because it supports the ICC an agri-food hub, in which international companies and organizations related to agriculture are connected.
Last Friday, in one of the rooms of the CAC, with an excellent view of the river, and accompanied by Marcelo Elizondo, president of the ICC Argentina, Denton spoke to Clarin. The manager illustrated his vision on the evolution of global trade, on the opportunities he sees in Latin America and, in particular, on the possibilities that are opening up in Argentina from the new government management.
When asked about his vision of global trade today, the manager emphasizes that it will be driven by it the expected growth of the global economy of 3% “despite the barriers that countries are erecting”, He says. It refers to “the 3,000 restrictions in place in international trade. “We see a big increase in these protectionist measures that prevent trade from growing further,” she said. In any case, even if it has improved, Commerce is lower than average after the pandemic.
According to Denton, “the predictions that globalization would disappear did not come true, they were unfounded. What is happening now is a ““reglobalization”. Value chains have contributed so efficiently to the creation of a productive link that they are very difficult to replace, he explains. “Although politics have created obstacles, the value chains continue to function, what can be observed is a shortening of these value chains. That is to say, perhaps, what was previously bought further away is now bought closer and thus those who operate reduce the risks.”
From How do you see the impact of China’s economic slowdown on international trade?the expert underlines: “When it was closed due to Covid, the Chinese crisis led to a collapse in consumption in that country and led to a slowdown in international trade, especially for Latin America.
In any case, it is a very important economic leader, it influences international trade a lot and after the opening it is becoming more dynamic. All in all, explains Denton, “the ICC encourages diversification, also knowing other markets”.
As for What opportunities does Latin America have in trade?the manager begins by providing some information: ““Less than 2% of small and medium-sized businesses in the region trade across borders.”He says.
Therefore, consider that there are many opportunities to increase transactions and facilitate business. In his vision, the path is to “simplify SME operations, work on financing, regulations, customs and trade facilitation so that companies increase their commercial capacity,” he says.
And he adds: “another question is that Latin America is more attractive to investors. How can you do it? “Improve standards, respect rights and sow stability for investments. So there will be opportunities and I am here to help in this, “he says. Furthermore, unlike Brazil, according to Denton, Argentina has an advantage which is the language, which is common to many countries in the region and facilitates connections .
In relation to the weight of Argentine representation in the ICC, Denton underlines that “Argentina is a very important player, it has a great influence in the formation of policies. “The Argentina CCI coordinates all of Latin America,” he summarizes. Elizondo adds that “there is an entrepreneurship center in the country designed to allow entrepreneurs to network with their peers around the world. In addition to the agribusiness hub which is global but is promoted from Buenos Aires to the world.”
As for the new Argentine government, Denton believes that the opening of the economy offers good opportunities for business. In his opinion, “any policy that facilitates business is well aimed sometimes the deregulation process is very complicated. But if it succeeds, it won’t just be good for business, but for everyone’s lives. The expectation is to change the economic model so that it is more prosperous”
It has some recommendations for Argentina? “Opening the economy is the first step. This allows us to participate in global trade chains and is very positive. The approach with the OECD is very important, it will give global investors much more confidence,” summed up the expert.
Source: Clarin
