Used Machinery Flood: Will Argentina’s Farm Industry Survive?

Argentina’s agricultural machinery sector is sounding the alarm over a new government decree allowing the unrestricted import of used equipment. 

The Argentine Association of Tractor Factories (Afat), representing major global brands like John Deere, Case IH, and New Holland, warns this move could have a "devastating impact," threatening local manufacturing, jobs, and even the future of farming productivity

Why the Panic?

Afat argues that flooding the market with outdated, discounted machinery from subsidized foreign economies will:

Crush local production – 60-75% of new equipment sales rely on trade-ins, now at risk.

Kill innovation – Over 70% of Argentina’s harvesters are already older than 10 years; new tech boosts productivity by 25%.

Risk phytosanitary disasters – Used imports could introduce pests like the corn leafhopper, which caused $2 billion in losses last season.

The China Comparison: Two Opposite Economic Models

While Argentina struggles with deindustrialization and reliance on imported second-hand goods, China’s economy thrives on the exact opposite strategy:

🇨🇳 China: Heavy investment in cutting-edge manufacturing, automation, and export-driven growth. It produces and sells machinery globally, including to Argentina.

🇦🇷 Argentina: Policy swings risk turning the country into a dumping ground for outdated tech, weakening domestic industry.

China’s success lies in protecting and scaling its industrial base—something Argentina’s erratic policies undermine. If Buenos Aires doesn’t reverse course, it may trade long-term growth for short-term bargains, widening the gap with global powerhouses.

Final Thought:
Argentina wants cheap fixes; China builds the future. Which model wins? 🚜 vs. 🏭