Argentine Industrial Union
Encyclopedia
The Argentine Industrial Union (UIA) is the leading industrial advocacy group in Argentina
, and one of the most influential in the country, in any sector.
manufacturers. The Argentine Industrial Club was organized to "establish a society at the disposal of local manufacturers in their efforts to secure the adoption of economic reforms." Overshadowed during the 19th century by the dominant wool and hides merchants, local industry was further marginalized by the 1876 advent of transatlantic chilled beef and cereals shipping.
The Industrial Club's early supporters in Congress included such distinguished figures as Miguel Cané
, José Hernández, Vicente Fidel López
and Carlos Pellegrini
, and through their support the Club obtained the passage of a customs
reform bill that included protective tariffs
on an array of consumer non-durables (such as processed foods and textiles). The Industrial Club organized its first exposition
, in 1877; but differences among its membership over support for President Nicolás Avellaneda
led to the group's 1878 division. An initiative led by Corrientes Province
Senator Antonio Cambaceres resulted in the February 7, 1887, establishment of the UIA, whose membership reflected a reunified industrial lobby.
as President following a political crisis made the UIA a powerful influece for the first time. One of the first milestones in this new era was the 1891 customs law, which for the first time in Argentine history set tariffs on a number of imported industrial supplies at or below those of finished goods.
The return to Julio Roca to the Presidency in 1898 signalled a rollback in pro-industry government policy, however. The UIA reacted quickly, and in 1899, a rally of 70,000 industrial workers and supporters (in a city of half a million) gathered in front of Congress, where UIA President Francisco Seguí 's petition for a return of higher import tariffs was received by a member of the Congressional leadership, who stated that: "your banner is union, and seeing you united dispels all doubts as to your strength. The united hands of the worker and his boss is also on our national emblem."
Benefiting its position as the world's leading recipient of investment from the British Empire
, and the resulting expansion in railway lines
, Argentine industry and agriculture both grew markedly in the late nineteenth and early twentieth centuries, and economic growth overall averaged 8%, in the generaion after 1880. Representing a sector which had grown to over 300,000 industrial workers by 1914, the UIA had become a fixture in policy discussions, and this presence was symbolized by the 1922 opening of their new headquarters on the Avenida de Mayo
(at a roughly equidistant point between Congress and the presidential offices at the Casa Rosada
).
The UIA's influence continued to grow with the nation's manufacturing
sector, whose output doubled between 1918 and 1929, alone. A 1930 coup d'état
and the onset of the great depression
erased many of these gains, initially. Saved from collapse by a resilient consumer sector, industry was hampered by a virtual halt in capital goods investment - almost all of which had to be imported. The 1933 Roca-Runciman Treaty
, which further impeded the import of U.S.-made production machinery, was vocally opposed by the UIA (though without effect). Most long-standing, protective triffs stood, however, and the economic recovery that began in the mid-1930s was fully extended to manufacturing.
Industrial production grew by 50% between 1935 and 1945, and its profile became more diversified, as well. Food processing
, which had long dominated industry in Argentina, was rivaled by the textile industry
in the 1940s. Industry employed nearly a million, and in 1943, its contribution to GDP had exceeded agriculture for the first time.
, was welcomed by the country's leading labor union, the CGT
; but was lookd upon warily by the UIA, which feared Perón support would embolden labor demands. Presented with national elections
in 1946, the UIA vigorously supported the populist leader's opponent, José Tamborini
. Perón's election that February handed the UIA its most serious setback since its establishment, however, when the President ordered it shuttered in 1947.
A faction led by smaller manufacturers established the General Economic Council (CGE), instead. The CGE enjoyed Perón's support, and helped shape his largely pro-industry agenda in subsequent years. The President's 1955 overthrow, however, led to the UIA's reauthorization, that December. Ongoing rivalry from the CGE, led the UIA to coalesce with conservative interests once opposed to it (such as the Argentine Chamber of Commerce, the Buenos Aires Stock Exhange and the Argentine Rural Society) to establish ACIEL, a business roundtable, in 1959. ACIEL was also fostered by President Arturo Frondizi
's Law of Foreign Investment, which helped usher in a wave of new, foreign industrial subsidiaries in the early 1960s. The rivalry between the CGE and the UIA/ACIEL was stoked not only by the CGE's Peronist stance; but also by geographic rivalries between the UIA's increasingly Buenos Aires-centric membership and the CGE's more provincial one. Ultimately, however, foreign subsidiaries' disproportionate influence in the Juan Carlos Onganía
dictatorship led to disputes with the UIA's domestic membership, and most of these subsidiaries withdrew from the UIA in 1967.
Manufacturing continued to grow in Argentina: it nearly doubled in output between 1945 and 1960, and again from 1960 to 1974. Perón's return from exile in 1973 helped lead to a fusion of the UIA and the industrial wing of the CGE into the Argentine Industrial Confederation (CINA). In contrast to his precious presidency, Perón enjoyed good relations with the group; they figured prominently in discussions leading to Economy Minister José Ber Gelbard
's 1973 Social Pact, and Perón, in turn, worked with the CGT to keep left-wing unions in check. In a strong position and amid a renewed economic boom, the UIA inaugurated its new headquarters in November 1974 - a 31-story building named after their crucial, early supporter, President Carlos Pellegrini
.
The understanding soured after Perón's July 1974 death, however, and in 1975, his widow and successor (Isabel Perón) ordered CINA dismantled. The CGE retained a measure of support for Mrs. Perón, who was facing violent left-wing opposition, impeachment and the threat of a military coup. The much-rumored coup's arrival, in March 1976, resulted in the CGE's ban, though not in policies amenable to industrial advocacy groups.
The dictatorship
's new Minister of the Economy, José Alfredo Martínez de Hoz
, ordered wages frozen (amid 30% monthly inflation) and achieved an initial exchange rate
stabilization. This led to a recovery in industrial production in 1977; but the effects of a series of wage freezes on consumer demand and the Economy Minister's strong peso policy helped lead to an uneven industrial performance in the late 1970s, and ultimately to a crisis. Manufacturing declined by 20% in 1981-82, and in some sectors, such as the textile and motor vehicle industries, by more than half.
A decade of severe stagflation was followed by new Economy Minister Domingo Cavallo
's Convertibility Plan
, in April 1991. The plan was initially endorsed by the UIA, which in return was able to obtain significant concessions from Cavallo, a free trade
supporter. Cavallo responded to an increase in dumping
by restricting clothing imports, for instance, and the sudden, initial boom in GDP (which grew by a third in four years) was shared by manufacturing. The Mexican peso crisis of 1995 exposed industry to the combined effects of a recession, an uncompetitive Argentine peso
and low import tariffs - though they manitained a cordial, if more critical, alliance with the free market
-oriented President Carlos Menem
. Lacking real influence in the Menem administration, particularly after Cavallo's 1996 removal, the UIA relied increasingly on its access to the Argentine press (notably Clarín
, the nation's premier newsdaily).
The Convertibility Plan eventually became unsustainable, however, and a severe crisis
led to the UIA's sale of the Carlos Pellegrini building to local conglomerate Pérez Companc
in 2001, and to their relocation to their belle époque
Avenida de Mayo headquarters.
, earned the UIA's support with his heterodox policy of regular wage increases, vigorous infrastructure investment, and a weak peso (which the Central Bank of Argentina maintained relatively undervalued by buying over 50 billion U.S. dollars in subsequent years. The economy and industry grew by over 60% between 2002 and 2008, and UIA's relationship with the two Kirchner
administrations remained positive.
More recently, however, evidence that the state statistical bureau, the INDEC, has had inflation and industrial production data altered prompted UIA demands for greater transparency in the hitherto highly-respected bureau. Another serous point of contention arose with the administration's unwillingness to challenge Venezuela
n President Hugo Chávez
's nationalization
of a Techint
subsidiary (Techint is a leading steel and industrial parts producer). The dispute has also led to the UIA's resistance to Venezuela's entry into the Mercosur
Common Market, further distancing the influential group from the administration.
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, and one of the most influential in the country, in any sector.
Early development
A precursor to the Argentine Industrial Union was founded on August 29, 1875, by a group of Buenos AiresBuenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
manufacturers. The Argentine Industrial Club was organized to "establish a society at the disposal of local manufacturers in their efforts to secure the adoption of economic reforms." Overshadowed during the 19th century by the dominant wool and hides merchants, local industry was further marginalized by the 1876 advent of transatlantic chilled beef and cereals shipping.
The Industrial Club's early supporters in Congress included such distinguished figures as Miguel Cané
Miguel Cané
Miguel Cané was an Argentine writer, lawyer, academic, journalist, and politician....
, José Hernández, Vicente Fidel López
Vicente Fidel López
Vicente Fidel López was an Argentine historian, lawyer and politician. He was a son of writer and politician Vicente López y Planes.-Biography:...
and Carlos Pellegrini
Carlos Pellegrini
Carlos Enrique José Pellegrini Bevans was President of Argentina from 6 August 1890 to 12 October 1892....
, and through their support the Club obtained the passage of a customs
Customs
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
reform bill that included protective tariffs
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
on an array of consumer non-durables (such as processed foods and textiles). The Industrial Club organized its first exposition
Trade fair
A trade fair is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products, service, study activities of rivals and examine recent market trends and opportunities...
, in 1877; but differences among its membership over support for President Nicolás Avellaneda
Nicolás Avellaneda
Nicolás Remigio Aurelio Avellaneda Silva was an Argentine politician and journalist, and president of Argentina from 1874 to 1880. Avellaneda's main projects while in office were banking and education reform, leading to Argentina's economic growth...
led to the group's 1878 division. An initiative led by Corrientes Province
Corrientes Province
Corrientes is a province in northeast Argentina, in the Mesopotamia region. It is surrounded by : Paraguay, the province of Misiones, Brazil, Uruguay, and the provinces of Entre Rios, Santa Fe and Chaco.-History:...
Senator Antonio Cambaceres resulted in the February 7, 1887, establishment of the UIA, whose membership reflected a reunified industrial lobby.
From marginalization to influence
The UIA, to be sure, represented at best a secondary sector in the Argentine economy, at the time. An 1887 industrial census taken by the group revealed 400 industrial establishments, and 11,000 production workers (these figures exclude a considerable amount of cottage industry). The UIA, which initially represented domestic manufacturers, was also overshadowed by the small, but growing, numbers of foreign industrial subsidiaries (mainly British). The group enjoyed increasing support among the nation's lawmakers, however, and the inaugural of Carlos PellegriniCarlos Pellegrini
Carlos Enrique José Pellegrini Bevans was President of Argentina from 6 August 1890 to 12 October 1892....
as President following a political crisis made the UIA a powerful influece for the first time. One of the first milestones in this new era was the 1891 customs law, which for the first time in Argentine history set tariffs on a number of imported industrial supplies at or below those of finished goods.
The return to Julio Roca to the Presidency in 1898 signalled a rollback in pro-industry government policy, however. The UIA reacted quickly, and in 1899, a rally of 70,000 industrial workers and supporters (in a city of half a million) gathered in front of Congress, where UIA President Francisco Seguí 's petition for a return of higher import tariffs was received by a member of the Congressional leadership, who stated that: "your banner is union, and seeing you united dispels all doubts as to your strength. The united hands of the worker and his boss is also on our national emblem."
Benefiting its position as the world's leading recipient of investment from the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
, and the resulting expansion in railway lines
Rail transport in Argentina
The Argentine railway network comprised of track at the end of the Second World War and was, in its time, one of the most extensive and prosperous in South America. However, with the increase in highway construction, there followed a sharp decline in railway profitability, leading to the break-up...
, Argentine industry and agriculture both grew markedly in the late nineteenth and early twentieth centuries, and economic growth overall averaged 8%, in the generaion after 1880. Representing a sector which had grown to over 300,000 industrial workers by 1914, the UIA had become a fixture in policy discussions, and this presence was symbolized by the 1922 opening of their new headquarters on the Avenida de Mayo
Avenida de Mayo
Avenida de Mayo , is an avenue in Buenos Aires, capital of Argentina. It connects the Plaza de Mayo with Congressional Plaza, and extends in a west-east direction before merging into Avenida Rivadavia.-History and overview:...
(at a roughly equidistant point between Congress and the presidential offices at the Casa Rosada
Casa Rosada
La Casa Rosada is the official seat of the executive branch of the government of Argentina, and of the offices of the President. The President normally lives at the Quinta de Olivos, a compound in Olivos, Buenos Aires Province. Its characteristic color is pink, and is considered one of the most...
).
The UIA's influence continued to grow with the nation's manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
sector, whose output doubled between 1918 and 1929, alone. A 1930 coup d'état
Coup d'état
A coup d'état state, literally: strike/blow of state)—also known as a coup, putsch, and overthrow—is the sudden, extrajudicial deposition of a government, usually by a small group of the existing state establishment—typically the military—to replace the deposed government with another body; either...
and the onset of the great depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
erased many of these gains, initially. Saved from collapse by a resilient consumer sector, industry was hampered by a virtual halt in capital goods investment - almost all of which had to be imported. The 1933 Roca-Runciman Treaty
Roca-Runciman Treaty
The Roca-Runciman Treaty was a commercial agreement between Argentina and Great Britain signed in London by the Vice President of Argentina, Julio Argentino Roca, Jr., and the president of the British Board of Trade, Sir Walter Runciman, the British envoy....
, which further impeded the import of U.S.-made production machinery, was vocally opposed by the UIA (though without effect). Most long-standing, protective triffs stood, however, and the economic recovery that began in the mid-1930s was fully extended to manufacturing.
Industrial production grew by 50% between 1935 and 1945, and its profile became more diversified, as well. Food processing
Food processing
Food processing is the set of methods and techniques used to transform raw ingredients into food or to transform food into other forms for consumption by humans or animals either in the home or by the food processing industry...
, which had long dominated industry in Argentina, was rivaled by the textile industry
Textile industry
The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural, or synthetic using products of the chemical industry....
in the 1940s. Industry employed nearly a million, and in 1943, its contribution to GDP had exceeded agriculture for the first time.
Political friction
The sudden prominence of the populist Labor Minister, Col. Juan PerónJuan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...
, was welcomed by the country's leading labor union, the CGT
General Confederation of Labour (Argentina)
The General Confederation of Labour of the Argentine Republic is a national trade union centre of Argentina founded on September 27, 1930, as the result of the merge of the USA and the COA trade union centres...
; but was lookd upon warily by the UIA, which feared Perón support would embolden labor demands. Presented with national elections
Argentine general election, 1946
The Argentine general election of 1946, the last for which only men were enfranchised, was held on 24 February. Voters chose both the President and their legislators and with a turnout of 83.4%, it produced the following results:-President:aAbstentions....
in 1946, the UIA vigorously supported the populist leader's opponent, José Tamborini
José Tamborini
José Tamborini was an Argentine physician and historically significant politician.-Life and times:José Pascual Tamborini was born in Buenos Aires, in 1886...
. Perón's election that February handed the UIA its most serious setback since its establishment, however, when the President ordered it shuttered in 1947.
A faction led by smaller manufacturers established the General Economic Council (CGE), instead. The CGE enjoyed Perón's support, and helped shape his largely pro-industry agenda in subsequent years. The President's 1955 overthrow, however, led to the UIA's reauthorization, that December. Ongoing rivalry from the CGE, led the UIA to coalesce with conservative interests once opposed to it (such as the Argentine Chamber of Commerce, the Buenos Aires Stock Exhange and the Argentine Rural Society) to establish ACIEL, a business roundtable, in 1959. ACIEL was also fostered by President Arturo Frondizi
Arturo Frondizi
Arturo Frondizi Ercoli was the President of Argentina between May 1, 1958, and March 29, 1962, for the Intransigent Radical Civic Union.-Early life:Frondizi was born in Paso de los Libres, Corrientes Province...
's Law of Foreign Investment, which helped usher in a wave of new, foreign industrial subsidiaries in the early 1960s. The rivalry between the CGE and the UIA/ACIEL was stoked not only by the CGE's Peronist stance; but also by geographic rivalries between the UIA's increasingly Buenos Aires-centric membership and the CGE's more provincial one. Ultimately, however, foreign subsidiaries' disproportionate influence in the Juan Carlos Onganía
Juan Carlos Onganía
Juan Carlos Onganía Carballo was de facto president of Argentina from 29 June 1966 to 8 June 1970. He rose to power as military dictator after toppling, in a coup d’état self-named Revolución Argentina , the democratically elected president Arturo Illia .-Economic and social...
dictatorship led to disputes with the UIA's domestic membership, and most of these subsidiaries withdrew from the UIA in 1967.
Manufacturing continued to grow in Argentina: it nearly doubled in output between 1945 and 1960, and again from 1960 to 1974. Perón's return from exile in 1973 helped lead to a fusion of the UIA and the industrial wing of the CGE into the Argentine Industrial Confederation (CINA). In contrast to his precious presidency, Perón enjoyed good relations with the group; they figured prominently in discussions leading to Economy Minister José Ber Gelbard
José Ber Gelbard
José Ber Gelbard was an Argentine activist and politician.-Career:Gelbard was born in Radomsko, Poland, in 1917. In 1930 Gelbard emigrated to Argentina with his parents and siblings. They settled in Tucumán, north of Buenos Aires. Those were tough times and Gelbard had to make a living as a...
's 1973 Social Pact, and Perón, in turn, worked with the CGT to keep left-wing unions in check. In a strong position and amid a renewed economic boom, the UIA inaugurated its new headquarters in November 1974 - a 31-story building named after their crucial, early supporter, President Carlos Pellegrini
Carlos Pellegrini
Carlos Enrique José Pellegrini Bevans was President of Argentina from 6 August 1890 to 12 October 1892....
.
The understanding soured after Perón's July 1974 death, however, and in 1975, his widow and successor (Isabel Perón) ordered CINA dismantled. The CGE retained a measure of support for Mrs. Perón, who was facing violent left-wing opposition, impeachment and the threat of a military coup. The much-rumored coup's arrival, in March 1976, resulted in the CGE's ban, though not in policies amenable to industrial advocacy groups.
The dictatorship
National Reorganization Process
The National Reorganization Process was the name used by its leaders for the military government that ruled Argentina from 1976 to 1983. In Argentina it is often known simply as la última junta militar or la última dictadura , because several of them existed throughout its history.The Argentine...
's new Minister of the Economy, José Alfredo Martínez de Hoz
José Alfredo Martínez de Hoz
José Alfredo Martínez de Hoz was an Argentine executive and policy maker. He served as Minister of the Economy under de facto President Jorge Rafael Videla between 1976 and 1981, and shaped economic policy during the self-styled National Reorganization Process military dictatorship.-Early...
, ordered wages frozen (amid 30% monthly inflation) and achieved an initial exchange rate
Historical exchange rates of Argentine currency
The following table contains the monthly historical exchange rate of the different currencies of Argentina, expressed in Argentine currency units per United States dollar...
stabilization. This led to a recovery in industrial production in 1977; but the effects of a series of wage freezes on consumer demand and the Economy Minister's strong peso policy helped lead to an uneven industrial performance in the late 1970s, and ultimately to a crisis. Manufacturing declined by 20% in 1981-82, and in some sectors, such as the textile and motor vehicle industries, by more than half.
A decade of severe stagflation was followed by new Economy Minister Domingo Cavallo
Domingo Cavallo
Domingo Felipe "Mingo" Cavallo is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2001, which brought the Argentine inflation rate down from over...
's Convertibility Plan
Argentine Currency Board
The Argentine Currency Board pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth. While it initially met with considerable success, the board's actions ultimately failed. In contrast of what most people think,...
, in April 1991. The plan was initially endorsed by the UIA, which in return was able to obtain significant concessions from Cavallo, a free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
supporter. Cavallo responded to an increase in dumping
Dumping (pricing policy)
In economics, "dumping" is any kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market...
by restricting clothing imports, for instance, and the sudden, initial boom in GDP (which grew by a third in four years) was shared by manufacturing. The Mexican peso crisis of 1995 exposed industry to the combined effects of a recession, an uncompetitive Argentine peso
Argentine peso
The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS...
and low import tariffs - though they manitained a cordial, if more critical, alliance with the free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
-oriented President Carlos Menem
Carlos Menem
Carlos Saúl Menem is an Argentine politician who was President of Argentina from 1989 to 1999. He is currently an Argentine National Senator for La Rioja Province.-Early life:...
. Lacking real influence in the Menem administration, particularly after Cavallo's 1996 removal, the UIA relied increasingly on its access to the Argentine press (notably Clarín
Clarín (newspaper)
Clarín is the largest newspaper in Argentina, published by the Grupo Clarín media group. It was founded by Roberto Noble on 28 August 1945. It is politically centrist but popularly understood to oppose the Kirchner government...
, the nation's premier newsdaily).
The Convertibility Plan eventually became unsustainable, however, and a severe crisis
Argentine economic crisis (1999-2002)
The Argentine economic crisis was a financial situation, tied to poilitical unrest, that affected Argentina's economy during the late 1990s and early 2000s...
led to the UIA's sale of the Carlos Pellegrini building to local conglomerate Pérez Companc
Perez Companc
Perez Companc could refer to* Gregorio Pérez Companc, Argentine businessman* Luís Pérez Companc, Argentine rally driver* Pablo Pérez Companc, Argentine auto racing driver* Jorge Pérez Companc, co-driver to Argentine rally driver, Juan Pablo Raies...
in 2001, and to their relocation to their belle époque
Belle Époque
The Belle Époque or La Belle Époque was a period in European social history that began during the late 19th century and lasted until World War I. Occurring during the era of the French Third Republic and the German Empire, it was a period characterised by optimism and new technological and medical...
Avenida de Mayo headquarters.
Recovery and new challenges
Following a chaotic and depressed 2002, the economy recovered beyond most observers' expectations. The appointment that April of a center-left economist who had helped shape the 1973 Social Pact, Roberto LavagnaRoberto Lavagna
Roberto Lavagna is an Argentine economist and politician, and was the former Minister of Economy and Production of Argentina from April 27, 2002, to November 28, 2005.-Career:...
, earned the UIA's support with his heterodox policy of regular wage increases, vigorous infrastructure investment, and a weak peso (which the Central Bank of Argentina maintained relatively undervalued by buying over 50 billion U.S. dollars in subsequent years. The economy and industry grew by over 60% between 2002 and 2008, and UIA's relationship with the two Kirchner
Kirchnerism
Kirchnerism is a term used to refer to the political philosophy and supporters of Néstor Kirchner, president of Argentina from 2003 to 2007, and of his wife Cristina Fernández de Kirchner, President from 2007...
administrations remained positive.
More recently, however, evidence that the state statistical bureau, the INDEC, has had inflation and industrial production data altered prompted UIA demands for greater transparency in the hitherto highly-respected bureau. Another serous point of contention arose with the administration's unwillingness to challenge Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
n President Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
's nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
of a Techint
Techint
Techint is a conglomerate multinational company founded in Milan in September 1945 by Italian industrialist Agostino Rocca and headquartered in Milan and Buenos Aires . Techint comprises more than 100 companies operating worldwide in the following areas of business: Engineering & Construction,...
subsidiary (Techint is a leading steel and industrial parts producer). The dispute has also led to the UIA's resistance to Venezuela's entry into the Mercosur
Mercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
Common Market, further distancing the influential group from the administration.