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Argentina and Brazil are taking opposite economic paths: while Argentina eliminates taxes on international purchases to attract investment, Brazil is tightening import rules.
Amid growing economic tension in South America, a surprising turnaround in international trade has been causing a stir.
While one of the countries is betting on liberalism to try to attract investment and strengthen its economy, the other follows a path of strict control, focusing on protecting the domestic market.
The result of this contrast? Two economies with different destinies and an uncertain future. But who is on the right path? Find out now!
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The recent measure taken by Argentina could be a game changer for international trade in South America.
The country has announced the end of taxes on purchases made abroad, a bold decision that promises to transform its economy.
According to presidential spokesman Manuel Adorni, the measure is part of a broader plan by President Javier Milei, which aims to attract foreign investment and reverse years of crisis and galloping inflation.
The new rule comes into effect in December 2024, signaling a clear attempt to restore global confidence.
Unlike Argentina, Brazil is following a completely opposite strategy, tightening its rules for international acquisitions.
According to the Ministry of Finance, the new rules aim to combat tax evasion and protect the internal market.
This change includes increased oversight and heavier taxation on imported products, which has affected both companies and consumers who rely on foreign e-commerce platforms.
The Federal Revenue Service reported that, in the last quarter of 2024, inspections increased by 45%, with taxes reaching up to 60% of the value of products.
The measure generated controversy, as many experts believe it could negatively impact the purchasing power of Brazilians.
The Argentine Economic Crisis and the Hope for Recovery
Argentina is going through a deep economic crisis, marked by galloping inflation and a history of fiscal mismanagement. However, the latest decisions indicate that there is light at the end of the tunnel.
According to the Fitch Ratings agency, the elimination of import taxes occurs just as the country begins to show signs of recovery.
The agency raised Argentina's credit rating to “CCC”, a slight improvement that brings some confidence in the country's ability to pay its debts.
At the same time, Javier Milei's government maintains a policy of fiscal austerity, which includes a consecutive fiscal surplus since October and a growth forecast of 3,9% for 2025, after a fall of 3,6% in 2024.
This “zero deficit” policy has been the government’s main focus, with Economy Minister Luis Caputo leading rigorous actions to reorganize public finances.
Although the country is still facing a recession scenario, expectations for recovery are moderately positive if the government continues to follow its line of fiscal reforms.
Brazil's Path: Protecting the Internal Market
In Brazil, the strategy is moving in a completely different direction. The Brazilian government has focused on protecting the domestic market by tightening international purchasing regulations.
According to experts, the intention is to increase oversight to combat tax evasion and avoid what they consider to be a negative impact on national industry.
However, many fear that these changes will result in an increase in the prices of imported products, which would further reduce the purchasing power of the Brazilian population.
Reduced access to foreign products can affect both consumers and companies that depend on imports to operate.
While Brazil is toughening its tax and import policies, Milei's government in Argentina is pursuing a bold strategy that focuses on economic liberalization to attract dollars and reverse the recession.
The outcome of this strategy is still uncertain, but the bets are on: will Brazil be able to maintain its economic stability, or could protectionist measures further increase the internal crisis?
The Impact of Measures: What to Expect?
The Argentine decision could bring significant changes not only for local consumers, but also for Brazilians, especially those who live in regions close to the border, such as Foz do Iguaçu.
According to analysts, it is possible that “bag purchases” will increase, with Brazilians going to Argentina to take advantage of the tax exemption.
However, the impact of this measure will depend on how the Argentine government deals with the balance between attracting investment and controlling its internal economy.
On the other hand, Brazil is still trying to protect its domestic market and reduce the cost of living, but this strategy has generated major challenges.
The high tax burden and stricter rules for international purchases can result in a scenario of economic isolation.
The country may face reduced access to foreign products, which harms not only consumers, but also companies that depend on importing foreign inputs and products.
Which Country Is on the Right Track?
The discussion about which country has adopted the best strategy to face economic challenges is not simple.
While the Argentina betting on economic openness and trade liberalization, Brazil seems to be closing itself off more and more, with policies to protect the internal market.
Both countries face deep structural difficulties, and their choices will have long-term consequences.
The question remains: Will Argentina's strategy of opening up be sustainable in the future? Or will Brazil, by protecting itself, be able to face external crises and remain competitive on the global stage? Which model do you think will bring better results for South America?
In the last three PT governments and the current one, industries were dismantled and scrapped. Many fled Brazil thanks to predatory policies in terms of taxes and corruption. Now these scoundrels come along with protectionist ideas. And what is tremendous hypocrisy is that these same scoundrels attack Brazilian agribusiness, which is a world reference. I am rooting for Milei's project to be successful.
Hoping doesn't solve anything. Wake up. Protecting the national industry is a necessity.
Wake up! Brazil is not self-sufficient and is becoming economically isolated
If you depend on a poor bastard like you, you will never be self-sufficient…
Which national industry? Yes, it's true, Sony, Samsung, Apple, etc... These industries, right?
What industry, Zé? We're stuck in time. Bananas are barely produced here.
Protecting a run-down and inefficient industry? The federal government understands nothing about productivity or efficiency.
In my opinion, the correct thing would be to encourage improvements in manufacturing processes in the productive sectors and in the manufacture of necessary products and inputs that need to be imported, rather than creating tax subsidies.
There is no way to question this given the profile of the current government, which insists on stimulating the economy through consumption with a revenue-generating bias.
Well... the economy is stimulated by making poor people... without purchasing power... dependent only on exports... congratulations... you know how to make a country rich... it must have been like that with the USA... they didn't protect their industries, did they!... bosoloid!
The numbers are indisputable: the most prosperous period, economically and socially, of the new republic was between 2004 and 2014! We had a legally manufactured crisis in 2016, which broke this cycle, however, in the last 2 years the indicators have already shown significant improvement in relation to the previous administration, there is still a lot to improve but the numbers show that this is the way.
Prosperity of corruption and robbery, monthly allowance, dollars in underwear and petrolão!
The worst blind person is the one who doesn't want to see!
It's not even that. The problem is that they share the same space with us. They can **** in that space because then we go and clean it.
The biggest crisis in history according to IBGE statistics. Hundreds of companies went bankrupt. It wasn't a legal crisis. It was real.
You came from Mars, right? You don't know even 1% of what's going on. Wake up from this trance, my son.
Prosperity is tied only to credit management and not to sustainable development. And the result is indebted families and scarce credit.
The PT's management was limited to just that: corruption, uncontrolled credit release and zero investment in national industry.
Demagogues and fraudsters
The only thing that has increased from 2004 to today is the fortune of Lula's allies, and corruption.
Since this joke was good, tell another one. Until the end of 2002, Brazil paid 80 billion in interest on its debt per year. Research how much Brazil started paying in interest in 2010 at the end of Lula's government. Then research in 2016 how much Dilma left for Brazilians to pay just in interest on the public debt annually.
What a crazy text. Lula invented these numbers and you believed him? LOL. Madness at the highest level of insanity!
Neither do you believe this fallacy. Either you are innocent, or you have a serious character flaw.
Buddy, after a Bolsonaro government, do you really want to talk about PT? He's a jokester.
The Bolsonaro government has greatly improved Brazil's economy. And this in the midst of the pandemic crisis and uncertainty about the war in Ukraine. Now with Lula, the economy's numbers are the same or worse than the pandemic, but without the pandemic...
It really got better. He even removed taxes from jet skis. He stole a bunch of jewelry. Bolsonaro supporters live in a world of Narnia. To this day, they believe that taxes have increased, when in fact, not even VAT has gone into effect. They believe that DPVAT will be charged, when in fact, it has already been abolished. It's all Lula's fault, but Lula's base has 320 deputies. If you ask them to name a law by a right-wing deputy for the poor, they won't find one. These are deputies who vote with the government and only care about parliamentary amendments. There are still more stupid people like that.
The PT really spent 15 years in power and Bolsonaro is to blame? Wake up and spit it out, you creature. The Real won the title of worst currency in 2024, the economy is sinking, inflation next year, not even the central bank can stop it anymore, the government is partying, now they want to pedal again, with no commitment to cut spending, shareholders skipping forums, the dollar? You can get ready to go over R$7,00 next year. And there are still **** like you, saying the words of Miriam Leitão, “understand how good this is..”
But for what you're saying, you probably don't live here. Because those who really do live here are feeling the effects of the misgovernment.
It's no use. **** doesn't see. They are donkeys bewitched by the senile drunkard ****. Leave them alone.
It has been more than proven that excess chloroquine with tubaina causes dementia…
The joke is on you, my dear Bolsonaro, who came out with a surplus and Lula, with little time in government, left Brazil in the red.
You know about industry and economics like I do about ET….
I agree with everything!
Hey little animal ****
I support Brazil, but our electoral politics do not allow it to work!!! It is necessary to make our industry competitive! Reduce government costs, lower taxes, attract investors, modernize technology parks, reduce costs and be competitive in the global market. Invest in those who produce and work, provide quality education, develop knowledge (good professionals), and provide quality infrastructure. In the medium and long term, closing the market will make our companies no longer competitive, there will be a loss of production, a drop in sales and jobs, just as taxing the richest will drive them away from Brazil and we will lose those who actually invest and create jobs. Full employment, development and wealth are built by attracting capital, producing goods and services, exporting so that money comes in, new investments are made, so that lower taxes are paid and higher revenues are generated for the country. Legal uncertainty, high government costs, the highest taxation in the world, and a lack of credibility and reliability burden, hinder and drive away investors. Our REAL currency is devaluing, losing value (and they turn the truth around by saying the dollar is rising). Where will the government's income come from? We could be a first world country, but with such a policy we will remain eternally underdeveloped. The government should be a facilitator and never an intervener.
It is necessary to end commissioned positions in the federal, state and municipal structures.
It is necessary to put an end to the millionaire pensions of daughters and granddaughters of military personnel, judges and prosecutors.
It is necessary to put an end to corruption by private companies over public agents and vice versa
Compulsory education is required up to the age of 18 on a full-time basis.
It is necessary to fight criminals mercilessly, without discrimination of social power.
When this loosening of restrictions suffocates Argentine stores, then you'll get an idea. The one who asked for international purchases to be taxed was the old man from Havan. Dude, no one can stand this kind of competition. As tough as it may be, the world only works with taxes. Set up a store and try to compete with the free market. Wake up, you idiot.
You must live on another planet, you just have to... talk to your idol, the old man from Havan and ask him if he disagrees with the taxation... excess chloroquine with tubaina really does cause dementia...
When there are no arguments, the tactic of demoralizing the opponent with jokes is used.
And it goes down, it goes down, it goes down to BC at the end of the year.
You say that because you don't produce anything and don't have to face competition from subsidized products from other countries. Trump is applauding Milei, but he promised to increase taxes on imports, including on Brazilian products.
There are controversies. In my opinion, opening the doors to imports could be a shot in the foot. Argentina will need dollars to pay for imports. It does not have dollars. And it could be unfair competition against the local industry, since we know that Argentina produces a lot of things. This Milei will sink Argentina even further.
LOL. Investors are leaving Brazil and going there, my son. Here, all that will be left is high interest rates and corruption. And poor PT supporters, you swear you give money to this country. ****
It has been more than proven that excess chloroquine with tubaina causes dementia…
If you mix it with Mortadella, then they become donkeys.
Have you been there? Well **** Frei Tomás…
MERCY!! Investors are leaving Brazil and going to Argentina!!?? Dude, get off social media and go read a book.
I think the same way, it will make international products cheaper and the national ones will end up at the end of stock and the local businessman will end up firing people, generating unemployment and a drop in income and that's the end 😢😢😢.
Are you that **** from birth? If you don't pay so much for bad things, it means you have greater purchasing power. Being able to buy better and cheaper things is bad where? Remember that entrepreneurs and businessmen also need to import goods and merchandise and by buying them at a lower price, it means a lower price being passed on to the end consumer.
That's the thing. First of all, the country should focus on manufacturing instead of importing. Trade is a consequence.
The aggravating factor is that fiscal policy does not generate revenue and the people, 65% below the poverty line, are unable to buy food.
Argentina had no other choice, my friend. There they did the same thing as here, except they don't have the agriculture to maintain the South American left-wing economic policy. Now, in desperation, they changed course without any therapeutic weaning!
The people are suffering a lot trying not to die…
Here we could gradually try to do something similar, it is not wrong to change, Brazil needs welfare and also a common sense of reality, the world is Capitalist…
Balance is the solution for us, from American party pop culture to Russian, Chinese and Cuban politics where there is poverty, work and AUTHORITY!
The Brazilian **** is a girl compared to these three…
Before writing such nonsense, read a little, study... See in practice, the big industries fleeing here and going there. Maybe your passion for politicians does not allow you to see the truth.
And we're going down, we're going down, we're going down to BC at the end of the year
Without a shadow of a doubt, Argentina is on the right track and will, over time, put on a great show in Brazil. Given that the Fitch Ratings agency has already raised Argentina's risk rating to "CCC... in addition to the fact that Argentina, after months and months of fiscal deficit in just one year of the Milei government, has already started to have a fiscal surplus...
As I always say > against facts there are no arguments…!!! Argentina will soon have amazing growth…!!!
Ok, so move to Argentina and enjoy this new era with Milei.
Brazil doesn't need you.