After Argentina adopted inefficient economic measures, it became synonymous with an insolvent country. The neighboring country cannot even pay off its debts for buying bananas. Recently, banana farmers in Bolivia and Paraguay decided to suspend exports of the fruit to Argentina the country is more than $20 million in debt. Argentina defaulted again.
According to the portal CNN Brasil, starting this week, trucks loaded with bananas will no longer cross the Argentine border.
protests
The import ban was accompanied by protests. In Asunción, the capital of Paraguay, local producers held a “Bananaço” on Tuesday the 15th. The protest took place in front of the Argentine embassy.
Free banana
In the Paraguayan capital as a sign of protest against the Argentina, local producers distributed free bananas. Drivers and pedestrians who passed the protest site took home bunches of bananas. The fruit was intended to supply supermarkets in Buenos Aires, Córdoba and Mendoza.
According to the Paraguayan Banana and Pineapple Chamber (Capabap), Argentine buyers owe more than $10 million for exported fruit a debt that has not yet been paid. In Bolivia, Argentina’s debt is at a similar level.
Around 3,200 banana trucks
Every year around 3,200 Paraguayan trucks travel to Argentina to supply the local market with bananas. Growing and selling the fruit employs more than 2,500 Paraguayan families which, according to Capabap, corresponds to around 30,000 direct and indirect jobs.
Argentina’s default on banana farmers is just another example of the country’s foreign trade difficulties. The current Argentine crisis represents a high point inflation and lack of money.
How imports work in the country
To import, Argentine companies must register their operations with SIRA, the import system of the Argentine Republic. The government can only approve imports from companies whose data is present in the system.
On September 4, 2023, Industry Day in Argentina, presidential candidate Sergio Massa announced in a celebratory tone the approval of import orders totaling around $700 million.
However, government approval is only the first step in completing purchases on the foreign market. According to Argentina’s central bank, goods importers had nearly $37 billion in debt as of June. In addition, there were debts of almost $11 billion related to services abroad.
By comparison, Argentina’s trade debt of nearly $48 billion is already higher than the country’s total debt to the International Monetary Fund, which currently stands at about $41 billion.
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