Argentina’s Fishing Industry Faces $300 Million Loss in 2024 Amidst Strife

by Fishery News
Published: Last Updated on

Due to forceful measures, Argentina’s fishing industry has suffered significant losses, amounting to almost 300 million dollars in 2024. This revelation stems from a comprehensive study conducted by the Latin American Foundation of Fisheries Sustainability (FULASP) following the second general strike of the year, organized nationwide by the General Confederation of Labor (CGT). The study delved into the severe economic downturn and job losses witnessed in recent months, amidst contentious deliberations and negotiations among unions, employers, and the national government.

The international organization behind the report assessed the adverse effects of the forceful measures implemented over the past five months, with culpability shared across all involved parties, on both industrial activity and employment as well as on state revenues.

The report elucidates that since the beginning of the year, the potential extraction of over 30 thousand tons of fish from Argentine waters has been squandered, resulting in a profound crisis of profitability within the industry, amounting to more than 260 million dollars. Additionally, FULASP highlighted significant breaches of international export contracts, temporary staff layoffs due to interruptions in harvesting, stagnant worker wages, and a drastic decline in state tax revenues related to extraction fees, export duties, and contributions to social security and healthcare.

Raúl Cereseto, President of FULASP, lamented the industry’s plight, stating, “Since the onset of 2024, Argentina’s national fishing industry has been ensnared in a web of conflicts and forceful measures, with blame evenly distributed among maritime unions, employers, and the national executive.” He underscored the detrimental impact of the inability to reach consensus on operational matters, resulting in repeated disruptions to normal production and cascading repercussions affecting various industries, regional economies, internal consumption, worker hiring and remuneration, and public revenues.

The port of Mar del Plata, housing a deep-sea fresh fleet, and the yellow ships of Chubut province, vital hubs in the country, experienced numerous activity cancellations due to joint union demands and business decisions, exacerbating labour waves.

Furthermore, proposed changes to the Federal Fisheries Law by the National Government, initially introduced as part of a reform package in January, stirred uncertainty within the industry, prompting operational setbacks. Cereseto emphasized the significant economic losses incurred due to disrupted processing and exportation, magnifying the impact of the crisis.

FULASP’s observations extend beyond Argentina, noting a high level of conflict within Latin American fishing, exemplified by the dire situation in Montevideo, Uruguay, where 90% of the fishing fleet remains idle since December, affecting nearly three thousand workers. At the national level, FULASP issued the report to raise awareness of the detrimental consequences of discord and the imperative of reaching agreements.

In conclusion, Cereseto stressed the necessity for the national government to convene a tripartite liaison table to devise a collaborative approach aimed at sustaining productive activities while aligning macroeconomic variables. Ending these conflicts, he remarked, remains a challenge, yet essential for the industry’s survival and the country’s economic well-being.

 

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