The Torres-Arbeletche duo is performing well, possibly because they are young and possess the ability to adapt to the new rules of the game

Chubut Leads the Way in Argentina’s Fishing and Aquaculture Sector with Concrete Measures

ARGENTINA
Thursday, January 16, 2025, 05:00 (GMT + 9)

The Province of Chubut is taking decisive steps to position itself as a leader in Argentina’s fishing and aquaculture industry by implementing strategic measures to promote development and attract investment.

Governor Ignacio "Nacho" Torres and his Secretary of Fisheries and Aquaculture, Andrés Arberletche, are advancing at a significantly faster pace and with greater coordination with the national government than other coastal provinces. The provincial leadership is addressing foundational issues to modernize and optimize the fishing and aquaculture sectors. Simultaneously, they are establishing clear and transparent rules to attract investors and support new projects in emerging port zones, as well as in the Trelew Free Trade Zone.

In this context, a meeting held yesterday is worth noting, as it sends strong signals of short- and medium-term expectations for the sector.

Governor of Chubut, Ignacio Torres and the head of ARCA, Juan Pazo

“It is necessary to address the fiscal and labor framework to reduce local costs,” Governor Torres stated after meeting with ARCA Director Juan Pazo. The meeting included technical teams working to accelerate the regulation and implementation of the Trelew Subzone Free Trade Zone, approved last December by Minister of Economy Luis Caputo.

Fiscal and Labor Benefits for Exporters

Exporters operating in the Free Trade Zone will benefit from exemptions, including the elimination of export duties, import taxes on equipment, and VAT on raw materials. Additionally, the Chubut government is placing the spotlight on a new aspect: the labor framework. They propose that, given the jurisdictional independence of the Free Trade Zone, tailored labor schemes could be implemented to enhance the competitiveness of the productive sector.

Progress in Regulation and Implementation

Yesterday, in Buenos Aires City, the first working session between the customs authority for the Free Trade Zone and the Chubut government took place, led by Governor Torres.

The meeting included ARCA Executive Director Juan Pazo and advisors from the country’s top fiscal and customs authority. Governor Torres was accompanied by José Ignacio Bellorini, Chairman of the Investment and Foreign Trade Agency and Chubut’s OECD representative to the Argentine Foreign Ministry.

During the session, both parties agreed on customs support for the development and launch of the Trelew Free Trade Zone. “We have established a work agenda with Puerto Madryn Customs, the Provincial Free Trade Zone Commission, and the Concessionaire to draft the regulatory resolution for its operation. This will drive trade, industrial activity, and manufacturing with high added value for export markets. The initiative aims to ensure maximum efficiency and cost reduction while directly generating employment as mandated by applicable law,” Torres explained.

Significance for the Fishing Sector

The governor emphasized the importance of the Free Trade Zone for fostering new investments with added value.

“We already have two large companies planning to establish operations there. We will double our efforts to ensure that the zone operates with clear and precise regulations,” Torres said.

The new subzone encompasses 165 hectares in Trelew designated for storage and industrial or service activities requiring this specific location.

Torres highlighted the potential for economic growth through an integrated circuit: raw materials, such as seafood, extracted via the Rawson port would be processed in Trelew and exported through the Puerto Madryn port. "The full implementation of the Free Trade Zone will guarantee growth and development for all residents of Chubut,” he said.

A New Labor Framework

The Trelew Free Trade Subzone offers significant opportunities for the fishing sector, particularly in encouraging specific investments in high-value-added products. Currently, much of the shrimp exported from Chubut is frozen in blocks and sent to countries like Peru, Vietnam, or those in Europe for reprocessing due to high local production and labor costs.

Reorganizing the chaos and aggressiveness of union activities is one of the greatest challenges for both the Province and the Nation

With the new Free Trade Subzone, Chubut could change this dynamic by establishing specialized production lines for high-value-added products. These exports would not be subject to export duties, VAT on raw materials entering the zone, or import taxes on technological equipment for processing.

In addition to these fiscal advantages, an essential upcoming discussion concerns the labor framework for the Free Trade Zone. Given its special jurisdiction, current collective bargaining agreements applicable in the fishing sector may not apply within the zone. This differentiation could pave the way for new labor schemes, a debate that the Chubut government appears ready to tackle.

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