Martín Berardi, the president of Ternium Argentina, has consistently advocated for a strategic approach to global economic integration. His comments reflect the growing concerns and opportunities that Argentina faces in the ever-changing global market. The industrial leader emphasizes that, while Argentina is at risk of becoming overly dependent on raw material exports, often referred to as "primarization" of the economy, there is also a significant opportunity to reverse this trend. For Berardi, the solution lies in an intelligent and well-thought-out strategy of opening the country’s economy to global markets, which would enable industrial reactivation and secure sustainable growth.
A key component of this strategy, according to Berardi, is nearshoring. As global companies re-evaluate their supply chains in the wake of disruptions caused by the pandemic, geopolitical tensions, and rising costs in distant regions, nearshoring has emerged as a critical trend. This practice involves relocating production closer to the final markets, and it presents a unique opportunity for Argentina to attract international companies looking for nearby manufacturing hubs in Latin America. For Argentina, nearshoring could serve as a catalyst for the reindustrialization of its economy, creating jobs, boosting domestic manufacturing, and ultimately increasing the country’s competitiveness on a global scale.
However, for Argentina to fully capitalize on the potential of nearshoring, Berardi argues that it is essential to create a systemic competitiveness that can make the country attractive to global investors. This competitiveness does not only rely on labor costs or raw materials but also on having a supportive and predictable business environment. One of the key barriers to achieving this, according to Berardi, is the current tax framework. The existing tax structure in Argentina is seen by many as burdensome and complex, making it difficult for businesses to thrive. Berardi suggests that reforming the tax system to make it more favorable and transparent could provide the much-needed conditions for growth, helping industries such as steel, which Ternium Argentina represents, to flourish.
Ternium, one of Argentina's largest steel manufacturers, operates in a sector where international competition is fierce, and efficiency is paramount. Berardi’s vision for Argentina involves reducing costs of doing business, streamlining regulatory processes, and improving infrastructure to facilitate industrial growth. This would help both local and foreign industries thrive, and in turn, contribute to the overall economic development of the country. According to Berardi, Argentina has the potential to become a manufacturing powerhouse for global supply chains, especially given its strategic location in Latin America and its relatively low labor costs compared to other regions.
At the same time, Berardi acknowledges the challenges facing the country’s economy. Argentina is currently grappling with inflation, debt, and a volatile currency, which complicates the investment climate. He emphasizes that Argentina cannot afford to fall into the trap of over-reliance on raw materials, such as soybeans and oil, which have historically been the backbone of the country’s export economy. While raw material exports can bring in foreign exchange in the short term, they do not contribute to long-term industrial development or the diversification of the economy. To avoid the danger of "primarization," Argentina needs to take steps to modernize its industrial base and increase the value-added products it produces.
Another critical aspect of Berardi’s approach is the importance of international partnerships. In today’s interconnected world, no country can thrive in isolation. For Argentina, forging stronger ties with global markets, especially in sectors such as steel, manufacturing, and technology, will be essential for boosting exports and attracting foreign investment. Berardi believes that opening up to the world in a controlled and strategic manner will not only help Argentina weather economic storms but also enable the country to become a competitive player in the global industrial arena. Ternium’s global footprint, with operations across Latin America, allows the company to leverage international markets and bring cutting-edge technologies and practices to Argentina, strengthening the country’s industrial base.
For Berardi, the road ahead is clear: Argentina must focus on creating a competitive, modernized industrial sector that can withstand external pressures and contribute to long-term economic stability. This vision requires a blend of policy reforms, including tax incentives, labor flexibility, and infrastructure investment, as well as fostering a positive environment for foreign investment. The challenge lies in balancing the interests of various stakeholders, industry leaders, workers, and government officials, to create an environment where both local and global companies can thrive.
