Tierra del Fuego rejects proposal to modify air conditioner manufacturing

Francisco Devita, the Minister of Production and Environment for Tierra del Fuego, announced that the province will vote against a proposal to modify the manufacturing process for air conditioning units. The initiative, pushed by the Association of Argentine Terminal Electronic Factories (AFARTE) and the Fueguian Industrial Union (UIF), is viewed by provincial authorities as a measure that would reduce the value added within the Special Customs Area (AAE).

During meetings with CEOs of major companies in Buenos Aires, Devita addressed concerns raised by manufacturers that current production lines might be discontinued if the process is not modified. In response, the Minister urged companies to instead propose projects that utilize existing idle capacity to manufacture new products with higher value, such as generic circuit boards, electric vehicle chargers, batteries, or monitors.

A technical report prepared for the National Secretariat of Productive Coordination will be presented at the next Special Customs Area Commission (CAAE) meeting on August 19. While the report will reach a negative conclusion regarding the proposal, Devita noted that the document is non-binding and the final decision rests with the national government.