Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Argentine truckers block capital streets to protest Macri reforms

Published 21/02/2018, 20:49
Updated 21/02/2018, 20:49
© Reuters. Demonstrators protest against labour reforms during a Truckers' union march in Buenos Aires

By Hugh Bronstein and Nicolás Misculin

BUENOS AIRES (Reuters) - Argentine truck drivers paralysed parts of Buenos Aires, throwing up road blocks in some of the city's busiest downtown neighbourhoods, in a protest on Wednesday against President Mauricio Macri's market-friendly economic policies.

The protest was seen as a test of the president's ability to keep pushing legislation in Latin America's No. 3 economy after a violent outcry over pension reforms he got through Congress late last year.

Macri, who took office in December 2015, is trying to cut Argentina's fiscal deficit by gradually reducing subsidies for home heating gas and transportation, moves that have triggered an unpopular increase in utility bills and bus fares.

"Mister President, don't continue with policies that force the most vulnerable parts of our society - retired people, old people - to go hungry," Hugo Moyano, head of Argentina's largest umbrella union, the CGT, shouted at an afternoon protest rally.

Union activists danced and beat on drums on Avenida 9 de Julio, the city's main thoroughfare, under banners representing various labour groups. Traffic was snarled for miles.

Macri aims to cut the primary fiscal deficit to 3.2 percent of gross domestic product this year from 3.9 percent in 2017.

If he presses on with his economic overhaul, aimed at winning the confidence of investors long put off by the high cost of doing business in Argentina, union leaders said they may call a trucking strike next month that could slow the flow of grains from one of the world's top exporters of soy and corn.

Produce is trucked from Argentina's vast Pampas farm belt to export terminals clustered along the Parana River in the country's main grains hub of Rosario. The waterway leads out to the shipping lanes of the South Atlantic.

Macri has promised big changes to labour laws, widely seen as among the most costly to companies in Latin America and a leading obstacle to investment, after his pro-business coalition performed unexpectedly well in October's mid-term elections.

© Reuters. Demonstrators protest against labour reforms during a Truckers' union march in Buenos Aires

The president nonetheless lacks a majority in Congress, and his administration was rocked by violent protests over pension reforms in December. Since then he has scaled back unpopular legislation as he prepares to run for re-election next year. He is now taking a piecemeal approach to labour law changes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.