Page 18 - MONTT LATIN AMERICAN MAGAZINE, MAY 2021, (English)

Argentina: Vaccine Production with Mexico and Suspension of Payments to the IMF
An Argentine-Mexican joint venture began to
operate for the production of AstraZeneca vaccines. In parallel, the trans- Andean country resumed its negotiations with P zer and the vice president is pressing for suspending payments to the IMF.
The collaboration between Mexico and Argentina to produce and package the AstraZeneca vaccine began to materialize with the rst distribution of 1,6 million doses between the two countries, after almost three months of delay.
This project began to take shape in August 2020 thanks to an agreement, supported by the Carlos Slim Foundation, for the distribution of this immunization throughout Latin America. The goal is to reach 250 million doses, the active ingredient of which is manufactured in Argentina by the biotechnology company mAbxience, owned by businessman Hugo Sigman, and is packaged in a plant at the Liomont laboratories in Mexico.
The two countries planned that these vaccines would begin to be distributed in the Region last March.
In Argentina, an opposition leader unleashed a storm by stating that the government did not buy vaccines from P zer with more e iciency and coverage because the pharmaceutical company refused to pay bribes. A P zer statement rejected the accusation outright. Argentina carried out at the time one of the major clinical trials of the P zer vaccine after its development and before its commercialization, which allowed it to enjoy priority for purchase. But the government of Alberto Fernandez rejected the option. P zer’s drug proved to be one of the most e ective and the President never convincingly explained why he decided to do without it. At the time, government spokesmen pointed out that P zer demanded as guarantee of payment guarantees that included military bases or glaciers. There was also talk of an excessive price (around $ 20 per dose) and an express waiver of ling lawsuits, something that all manufacturers apply. The main stumbling block apparently consisted in a parliamentary resolution (approved with official and opposition votes) according to which Argentina would
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not accept indemnity conditions for P zer in the event of “fraudulent manoeuvres, malicious conduct or negligence.” Patricia Bullrich, who held three ministries (Labour, Social Security and Security) under the presidency of Mauricio Macri, launched a very serious public accusation against the Fernandez government. She said that Argentina and P zer had not reached an agreement because the then Minister of Health, Gines González García, had asked for bribes.
She later clarified and explained that González García (who was dismissed in February due to the scandal of preferential vaccinations for people linked to Peronism) asked P zer to partner with an Argentine intermediary that resulted in people involved in cases of Kirchner corruption. She, in one way or another, accused the Government of trying to obtain nancial gain undercover.
Pfizer immediately denied that such issues had arisen during the negotiation. Meanwhile, the Government of Buenos Aires and P zer maintain new contacts for possible future purchases, although the aforementioned parliamentary resolution continues to be an obstacle.
Likewise, Cuba and Argentina signed a letter of intent to strengthen bilateral cooperation relations and within that framework collaborate with possible vaccines against covid-19 that the Island develops, as well as in the immunization of the population of their countries and of other countries. Latin America and the Caribbean.
Suspension of Payments
On the other hand, Argentine Vice President Cristina Fernandez de Kirchner is pressing for the payment of debts to the International Monetary Fund and the Paris Club to be suspended, at least until the end of the pandemic. The power of the former President and current vice president seems
to grow day by day, while the popularity of the President is at its lowest point: according to various polls, almost 70 percent of citizens reject her management.
But despite the e orts of the vice president, Alberto Fernandez and his Minister of Economy, Martín Guzman, they promised to continue paying the debt installments until a restructuring was agreed. A critical moment will come in the next few days when a debt of USD $ 2.4 billion with the Paris Club expires. After expiration, a 60-day period opens, after which, if Argentina does not pay, it is in default. Minister Guzman tries to reach an agreement that gives him more time (the default would mean an automatic recharge of interest), but his credibility is reduced by Kirchnerist pressure.
Meat Export
On the other hand, President Fernandez prohibited the export of meat for a month. The surprising announcement was made by means of a brief note that set the farmers’ spirits on re. The Government’s idea is to curb the increase in the price of beef, and moderate in ation, which represents 47,2 percent year-on-year. Producers say the cessation of exports will seriously damage the sector and further reduce foreign exchange earnings. As a rst measure of protest, the farmers agreed to stop the commercialization of meat for a week The gubernamental measure had an immediate e ect. In the Liniers Hacienda Market, the heart of the meat sector, prices per kilo dropped from 111,4 pesos to 94,6 pesos in a few hours. Banning exports always works in the short term, because a surplus of supply is generated in the domestic market. Another thing are the consequences in the medium and long term. Not only are customers and the trust of external buyers lost, but producers tend to reduce the number of cattle heads due to lack pro tability.