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On September 19, 2014 the Boletin Oficial de la Republica Argentina (Official Gazette) published new Law No. 26,991 Regulating Relations of Production and Consumption (New Law) which amended the Supply Law No. 20.680 signed by President Peron in 1974 (Supply Act). The New Law supposedly aims to “… to ensure the transparent operation of the market for goods and services” in order to “prevent abuse and misappropriation of surplus value chain” and “protect the general welfare by guaranteeing basic or essential needs.”
Some of the main provisions of the New Law are the following:
• Confirms the legislative delegation of broad powers to the National Executive Branch to fully regulate the economic process in all its various stages.
• Maintains the main rules of the Supply Law, for example, set price controls and production, impose obligations to supply the domestic market (produce, market, distribute regulated goods) or to set profit margins to companies, among others.
• Excludes micro, small and medium enterprises (MSMEs) of the New Law provided that they do not hold a dominant position in the market.
• Removes some controversial issues of the Supply Act, such as the power to order the expropriation of property in situations of economic emergency; physically intervening factors of production of the companies with the urgent need to ensure the supply; lower or temporarily suspend import duties and prohibit or restrict the export as required by the needs of the country.
For additional provisions and information, please see the Newsletter “Amendment on the Supply Law” (also available in Spanish: “Reforma a la Ley de Abastecimeinto”) prepared by Luis Dates and Adolfo Durañona of our Buenos Aires office.
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