Caputo said that the elimination of tariffs in Tierra del Fuego was his idea and that it affects a cousin of his.

In the midst of a day marked by the elections for legislators for the City, which gave La Libertad Avanza the victory, the Minister of Economy, Luis Caputo, ratified his intention to move forward with the reduction of tariffs and taxes for electronic products from Tierra del Fuego , despite the fact that the measure affects his cousin Nicolás "Nicky" Caputo, owner of Mirgor, one of the main electronics manufacturers on the island.

"We are the only government that ended a regime that everyone was against, and it was my decision. As you know , one of the two companies belongs to a cousin of mine. So, when I see an official end something that doesn't benefit their family, let me know and I'll make a cocktail of toads ," the official said this Sunday afternoon after voting at a school in Palermo.

Caputo referred to the measures announced last week by Manuel Adorni, presidential spokesperson and candidate for La Libertad Avanza (Freedom Advances) in Buenos Aires City. These include the elimination of import tariffs on cell phones from 16% to 8% until January 15, 2026, and then to 0% thereafter . The measure also includes the reduction of internal taxes from 19% to 9.5% for products made outside of Tierra del Fuego and from 9.5% to 0% for those manufactured on the island.

The minister's team is working on the final details of the decree with the intention of publishing it imminently. The Secretary of Industry and Commerce, Pablo Lavigne, held internal meetings in recent hours to fine-tune the fine print and contacted companies, according to Clarín. " It will be published in the Official Gazette in the coming days ," confirmed sources from the Ministry of Economy.

The electronics industry maintains that the changes were "coming" in response to criticism of the industrial promotion regime in place since 1972. To populate the province, the state maintains exemptions from VAT and tariffs on imported inputs, at a fiscal cost of US$1 billion per year. Thus, since its creation, the island's population has grown from 13,500 to 190,000, and today it generates 11,000 private jobs, 8,000 of which are in 20 electronics industry companies.

In March of last year, Javier Milei said that "the problem is not the taxes Tierra del Fuego doesn't pay, but everything the continent pays." But in April, the government pledged to the IMF to reduce "inefficient" tax expenditures , and last week it set its sights on lowering the prices of imported electronics by "at least around 30%," despite the fact that the automotive sector, the knowledge industry, and mining companies also receive tax benefits.

Within the sub-regime, which is renewed until 2038, Mirgor is one of the main companies operating in Tierra del Fuego, along with Newsan, owned by Rubén Cherñajovsky . It is followed by BGH, Electrofueguina, Radio Victoria, and Solnik.

The Caputo family company owns seven manufacturing plants in the country : three in Buenos Aires (Baradero, Zarate, and Escobar), one in Rosario, and three in Río Grande. In the city of Tierra del Fuego, it employs 3,000 people and assembles cell phones for leading brands such as South Korea's Samsung, producing 3 million units per year out of a total market of 8 million. Together with Newsan, they account for 85% of cell phone production. It also produces air conditioners, car radios, and electronic modules.

Mirgor, which began as an auto parts company and is now expanding into the tourism, agricultural, and technology sectors, is awaiting the publication of the decree to analyze its impact and make decisions. "Nicky" Caputo is the minister's cousin, and both are uncles of Santiago Caputo, advisor to Javier Milei. Industry insiders assert that the businessman is not "involved" in the decisions and is "just another shareholder" with 10% of the shares among 4,000 holders, while ANSES holds 23% of the holding.

While industry in Tierra del Fuego believes its products are "competitive" and that the problem is the "Argentine cost," companies are already considering reducing costs. Luis Galli, CEO of Newsan, warned last week that the measures will have "consequences" for people. " We're going to look for the eight points of tariff loss elsewhere ," acknowledged one businessman.

The government's decision thus sparked a conflict with the UOM, which launched an indefinite strike in the electronics industry on Thursday and announced a general strike of all unions in the province starting this Wednesday in defense of jobs.

However, electronics manufacturers could benefit from a relief : the government will issue a separate decree allowing Tierra del Fuego products to enter the continent via courier services, which would reduce logistics costs and could result in better prices for consumers.

Mirgor has another advantage: for now, tariffs and taxes on computers, a product it manufactures at its Garín plant, have not been affected . This way, the government maintains the system implemented by Sergio Massa in March 2023, when he increased import tariffs on notebooks, tablets, and computers from 0% to between 8 and 16%.