¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 12th of December twenty twenty-four. A quick summary of what's going down in Argentina.

Marking his first year in office, President Milei addressed the nation on Tuesday the 10th via a national broadcast. His speech focused on his achievements, as well as promises for the next year, such as major reforms, like slashing 90% of national taxes, restoring fiscal autonomy to provinces, and letting people freely transact in dollars or any currency.

He announced plans to lift currency controls, negotiate free trade with the US, and create an Argentine FBI to fight crime. Milei also vowed to shrink government spending drastically and tackle narcoterrorism in the region. His speech struck an optimistic tone, envisioning a brighter future and expressing gratitude to the Argentine people for their support.

When it comes to media coverage, most outlets seem to agree it’s been a whirlwind of economic reforms, political drama, and ideological battles. Milei rose to power with promises of libertarian transformation, and his presidency has delivered—though not without significant costs. Pensioners, for example, have faced severe hardships as economic reforms slashed state spending, with minimum pensions and bonuses totaling just a fraction of the cost of living. Still, Milei retains an unexpected level of public support.

Speaking of what to expect next year, Milei promised the Argentine Rural Society that he would cut export taxes in twenty twenty-five—provided fiscal stability holds. He reassured the agricultural sector of his commitment, highlighting deregulation and market-opening policies as evidence.

Also, the Central Bank expects inflation to slow down, which is why it has lowered its benchmark interest rate by 300 basis points to 32%. Effective on Friday the 6th, this marks the eighth rate cut since President Milei took office.

After twenty-five years of discussions, Mercosur and the European Union have finally announced a long-awaited free-trade agreement. The announcement came during the 65th Mercosur Leaders Summit in Uruguay. While the deal aims to reduce tariffs and make trade easier for small businesses, ratification still faces challenges, particularly opposition from some EU members like France. As Mercosur’s current leader, Milei underscored the need for reforms within the bloc, calling for greater trade flexibility and stronger measures to address regional security threats.

On that note about trade, wheat exports surpassed 7.60 million tons for the twenty twenty-three/twenty twenty-four season, a significant recovery from the drought-stricken previous year. Looking ahead, wheat production for twenty twenty-four/twenty twenty-five is forecast at about nineteen million tons, slightly lower than earlier estimates, with export projections aiming for twelve million tons—potentially the second-highest volume on record.

You might recall from last week’s episode that Flybondi, the low-cost airline, ranked among the worst for cancellations and delays. Shortly after, the government issued an ultimatum, demanding the airline take action. The National Civil Aviation Administration has ordered Flybondi to submit a detailed plan to reduce cancellations and improve passenger protection, warning of potential fines and further measures if progress isn’t made.

Shifting from the skies to underground, Palermo station on Buenos Aires’ D Line of the Subway closed down on Monday the 9th for renovations, opening up in three months. The upgrades will include waterproofing, repainting, floor repairs, new LED lighting, updated signage, and new platform amenities like benches and trash bins. Similar renovations are already underway at other stations, such as Scalabrini Ortiz on Line D and Lima on Line A, with additional closures planned for upgrades across multiple lines.

In more government moves, on Monday the 9th the president fired Florencia Misrahi, head of Argentina’s ARCA tax agency—formerly called AFIP—over her decision to create a tax classification for digital workers like streamers and influencers without prior authorization. Even though this change didn’t create new taxes, it allowed these professions to better align with the existing tax system.

Misrahi’s high salary also fueled tensions. The government announced the dismissal alongside plans to revoke the classification, reaffirming its stance against targeting digital businesses and emphasizing that reducing public spending, not new taxation, is the path to addressing Argentina’s fiscal deficit. Juan Pazo, a former Economy Ministry official, will replace her.

Since we’re talking about public officials, Senator Edgardo Kueider was detained at the Paraguay-Brazil border with over 200,000 dollars in undeclared cash during a routine check on the International Friendship Bridge. He couldn’t explain the origin or purpose of the money, sparking a political controversy. Kueider, elected as a Peronist but often supportive of President Milei’s policies, is now under investigation by anti-money laundering authorities to determine if the funds are tied to smuggling or illicit activities.

From Paraguay to Bolivia, the Argentine government has announced that its Coast Guard will begin patrolling the Bermejo River, which borders Bolivia, to establish a stronger armed presence in the region. Patricia Bullrich, the Security Minister, unveiled the Güemes Plan, aimed at combating drug trafficking, smuggling, human trafficking, and organized crime.

Further North, Argentina’s Foreign Ministry has raised concerns about six Venezuelan opposition members who have been sheltering in its Caracas embassy since March, accusing Venezuelan authorities of harassment. The asylum seekers say that police and intelligence agents have been surrounding the embassy for over two weeks, cutting off access to water, electricity, and communication in an apparent attempt to intimidate them. Argentina has demanded safe passage for the group, linked to opposition leader María Corina Machado, and has called on international bodies like the UN and the Organization of American States to intervene.

In other news, Forbes recently unveiled its list of Argentina’s wealthiest individuals, highlighting the top five billionaires who together hold a staggering twenty-eight billion dollars. Leading the pack is Marcos Galperin, founder of Mercado Libre, with a fortune of 8.5 billion dollars. He’s followed by Hugo Sigman, a pharmaceutical magnate worth 6.3 billion dollars, and Alejandro Bulgheroni, an energy tycoon with five billion. Luis Pérez Companc, active in food and energy, comes in fourth at 4.2 billion, while steel industry leader Paolo Rocca rounds out the top five at four billion.

Forbes highlighted the stark inequality, noting that the combined wealth of Argentina’s fifty richest individuals exceeds twice the country’s Central Bank reserves.

Also in business, the country is on track to surpass Colombia as one of South America’s top three oil producers, thanks to a surge in shale drilling at the Vaca Muerta field. With shale oil now making up 60% of its crude output, Argentina is experiencing its highest production levels in over two decades. While Brazil and Venezuela hold the top two spots in the region, Argentina’s rising output could significantly reshape the oil landscape.

For those looking to invest in Argentina, the Atlantic Council published an article titled What to know about Argentina’s new investment promotion regime. The piece discusses the new Incentive Regime for Large Investments, or RIGI, a key component of Milei’s economic reform agenda. It outlines how RIGI offers tax breaks, reduced export duties, and relaxed capital controls to promote large-scale investments, particularly in sectors like energy, mining and technology.

Check out the link in the show notes to read the full piece.

To wrap up, here’s a challenge for you: if you had to guess, what were the top Google searches of twenty twenty-four in Argentina? Take a moment—pause the episode if you want—and think about it. Got your guesses ready? Let’s see how you did.

Coming in at number one is Copa América, driven by questions like, What time does the Argentina national team play? Next, we have INADI, the anti-discrimination agency, which made headlines earlier this year after the president shut it down. In third place, Ley de Bases, President Milei’s sweeping reform package. Fourth is Franco Colapinto, the rising F1 star. And rounding out the top five, Gran Hermano (Big Brother), the hugely popular reality TV show.

Another standout trend? Artificial intelligence—people were diving into creative uses like generating images and producing videos.

Aaand that’s it for this week! Thank you for joining us!

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¡Nos vemos la próxima semana!