Decree 70/2023 – “Bases for the Reconstruction of the Argentine Economy” Emergency declaration and deregulation measures

What does the declaration of emergency imply?

DNU 70/2023 declares a public emergency in economic, financial, fiscal, administrative, social security, tariff, health, and social matters, until December 31, 2025.

According to the Argentine Supreme Court of Justice’s case law, the legislative declaration of emergency may be construed as enabling an intense exercise of public regulatory powers.

Therefore, it is possible that this declaration of emergency may be the basis for the adoption of new regulations and amendments, complementary to DNU 70/23.

From 2002 to the present, the economic emergency has been in force almost uninterruptedly in Argentina, with different scopes, under governments from different political parties, and judicial courts have generally carried out a deferential control of the regulations issued under it.

What principles govern the Bases for the Reconstruction of the Argentine Economy?

Economic Deregulation

DNU 70/23 promotes an economic system based on free decisions, free competition, respect for private property and constitutional principles of free circulation of goods, services, and labor.

It also postulates the broadest deregulation of trade, services, and industry throughout the national territory, leaving without effect any restriction or requirement that distorts market prices.

Insertion in the world

DNU 70/23 also promotes the insertion of Argentina in world trade through the adoption of international standards for the trade of goods and services and the harmonization of the domestic regime with the regimes of Mercosur countries and other international organizations, especially in accordance with the recommendations of the World Trade Organization and the Organization for Economic Cooperation and Development.

Which sectors have been deregulated?

DNU 70/23 provides for the total or partial repeal of a set of laws related to economic regulation.

The following regulations, among others, are repealed:

• Law No. 18.425 on Trade Promotion, which regulated the transformation of commercialization systems.
• Law No. 18.875, on National Procurement, with the exception of its criminal provisions.
• Law No. 19.227 on Wholesale Markets.
• Law No. 20.657, which regulates the Regime for the Commercial Activity of Supermarkets.
• Law No. 20.680 on Supply.
• Law No. 26.736, on the National Registry of Manufacturers, Distributors and Traders of Cellulose Pulp and Paper for Newspapers.
• Law No. 26.992 on Goods and Services, which provided for the creation of the Observatory on Prices and Availability of Supplies, Goods and Services.
• Law No. 27.437 on Buy Argentine and Supplier Development, with the exception of its criminal provisions.
• Law No. 27.545 of Gondolas (point of sales product displays).

Despite these specific abrogations, there are different provisions of DNU 70/23, which through amendments to existing regulations also imply the deregulation of broad sectors of the economy.