UIA's Rappallini: "Trust is restored by honoring debts."

Amid the pre-election noise and the US Treasury's bailout, the industry is experiencing a sharp decline in activity and a debate about competitiveness. In this context, the head of the Argentine Industrial Union (UIA), Martín Rappallini, emphasized that external aid is positive, but insufficient, since the key to attracting long-term investment is legal certainty.

In an exclusive interview with PERFIL during the 61st IDEA Colloquium in Mar del Plata, he raised the need for profound tax reform, labor modernization, and greater integration with the world so that Argentina can finally "level the playing field" and compete regionally and internationally.

—Within the tax issue and in terms of industry, do you think it's feasible for Argentina to rethink its tax system?

—Yes, I'm convinced that Argentina, with tax reform, lowering taxes from 50 percentage points to 32—which is the goal of the reform—plus labor modernization, can become very competitive within the region and also against Western countries. Competing against China is a different ball game, but yes, we will be competitive within the region.

—What is expected for the future of trade agreements? There's talk now of a pact with the United States, but also with other countries.

—It's essential. Integration is fundamental to this model, because if Argentina begins to grow, it needs them, as do all countries of this size. For me, the alliance with the United States and, on the other hand, the Mercosur alliance with Europe are fundamental. And I think there are many opportunities there, since integration, exports, investments throughout the country, and the possibility of partnerships with American and European companies, where we have very close cultural roots, are very positive.

—What signal does this give to these potential countries with whom the financial support pledged by the U.S. could be agreed upon?

—Trust is something that is restored over time. While we are receiving assistance, it's also important that we maintain or fulfill our obligations. That contracts are paid, that all debts are honored.