The companies grouped in the Asociación de Fábricas Argentinas Terminales de Electrónica (AFARTE) and the Unión Obrera Metalúrgica (UOM) reached an agreement on Friday that ended the conflict in Tierra del Fuego and allowed the return of workers to their activities. This comes after a week of an indefinite strike in response to the Government's decision by Javier Milei to eliminate import tariffs for cell phones. According to a recently released statement, both parties agreed to suspend any layoffs until December 31, 2025, and ensure the immediate reinstatement of staff to their jobs. [IMAGE]{1035940}[/IMAGE] As part of this commitment, the companies in the sector pledged not to carry out layoffs, while the workers solved to resume their tasks. The agreement also provides for the formation of a joint working table, which will include union, business, and government representatives, both at the national and provincial levels. The purpose of this dialogue instance will be to design strategies that allow improving the sector's competitiveness in light of the official announcement that establishes the total elimination of the cell phone import tariff starting in January 2026. It is worth remembering that last week the tariff was reduced from 16% to 8% and will disappear completely in the summer. During this time, the goal of the conversations will be to implement tools that facilitate adaptation and ensure the industry's sustainability in this new scenario. Ana Vainman, executive director of AFARTE, stated that the industrial sector committed to safeguarding jobs and reinforcing efforts to ensure the sustainability of the field. "We assume this commitment not to carry out layoffs and, at the same time, we redouble efforts to find ways that allow us to find mitigating measures that allow maintaining the industry's sustainability and gaining competitiveness together with all the actors involved," she expressed. [IMAGE]{992928}[/IMAGE] The electronics industry based in Tierra del Fuego represents between 30% and 35% of the province's Gross Domestic Product (GDP), constituting the main source of private employment and the largest fiscal contributor in the region. According to the statement, more than 18,000 jobs—both direct and indirect—depend on this activity, highlighting its weight in the Fuegian economy. AFARTE highlighted the importance of addressing the issue of high structural costs, pointed out as one of the main reasons explaining the high prices compared to other markets. "The consumer deserves lower prices, but there are many ways to do it without destroying the national industry. That's why we propose to continue working on reducing the Argentine cost," they indicated from the entity. Milei Government's Measures It should be noted that, along with the progressive elimination of the cell phone import tariff, the Milei Government also formalized a reduction of internal taxes applied to cell phones, televisions, and air conditioners. Meanwhile, the favorable tax differential for Fuegian production was maintained, a decision that was celebrated by the sector's entrepreneurs. While the tax for imported products was reduced from 19% to 9.5%, for those manufactured in Tierra del Fuego it dropped from 9.5% to 0%. The companies grouped in AFARTE reaffirmed their commitment to investment in research, development, and innovation, as well as to the reconversion of the island's production model. Their aim is to incorporate technology and efficiency to achieve a more competitive integration of the Fuegian electronics sector in a scenario of increasing commercial openness.
