Regional economy at risk, strong internal dispute in the government over a key product for Argentines

Mate

Argentina

Regulation & Compliances

Published Jan 15, 2024

Tridge summary

The government wants to deregulate the yerba mate market, including removing powers from the National Yerba Mate Institute, which has caused opposition from the missionary productive sector. Libertarian legislator Francisco Paoltroni supports the sector's opposition, pointing out the oligopsony nature of the market and the need for specific regulation. The agrarian leader and producer also opposes deregulation, stating that it does not lower prices for consumers and may lead to mobilizations and legal action if not addressed.

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Original content

The government seeks to deregulate the yerba mate market. To do this, it included the removal of powers from the National Yerba Mate Institute such as setting prices and regulating the market. The missionary productive sector is against this measure and went to the Senate to ask the legislators that they do not approve this part of the decree. The libertarian legislator from Formosa, Francisco Paoltroni, participated in the meeting, surprising with his position similar to that of the herbalists. Paoltroni pointed out that this market is an oligopsony, meaning that there are few buyers for a lot of supply. “This is a very particular case, because we could say that it can be regulated with exports, but yerba mate is not exported much. So there cannot be a proper regulation of the market due to these characteristics,” stated the senator, in a position contrary to what President Javier Milei proclaims, that the market regulates everything. “These are issues that must be addressed, pay ...

Source: Suenaacampo