The Argentine government, with decree 340/2025 published last Wednesday in the "Official Gazette of the Argentine Republic', approved a new 'Regime of Derogation for the National Merchant Navy" with the aim of declared to reactivate river and maritime transport Argentine, attract investment and generate employment. The provision amending articles of the Law on Navigation (no. 20.094) and other regulations, allowing inter alia foreign ships to be registered in the national shipping register and therefore to be able to operate as Argentine vessels in local cabotage. The crew of these ships must be composed of at least 75% by Argentine seafarers or residents in Argentina, even if may be subject to the employment laws of their country of origin. In addition, Argentine shipowners are authorized to operate under flags of convenience with the stated objective of international competitiveness and reduce the costs.

"Urgent Ordinance 340/2025 - said the minister Deregulation and State Transformation, Federico Sturzenegger, illustrating the decree - restores the constitutional spirit of freedom of navigation, deregulates the cabotage market and corrects decades of distortions imposed by state rule and bureaucracy union. Managing an Argentinian-flagged ship - ha - is up to four times more expensive than in neighboring countries". The new regime - added Sturzenegger -"marks the end of an era of restrictions that has left the country with less than 20 vessels active in cabotage" and opens the "a thriving and competitive maritime sector, in particular in line with the logistical needs of the twenty-first century".

The government pointed out that the new decree provides that the ships' crews will no longer need the guarantee thus eliminating extortion practices and the Personnel selection will be the sole responsibility of of the shipowner, while the Argentine Naval Prefecture will maintain the power to establish minimum safety requirements. In addition, the deadline by which ships operating internationally can carry out cabotage operations has been extended by 30 to 60 days and the procedures for registration and cancellation of registered vessels national. The executive led by Prime Minister Javier Milei has stressed that barriers to the operation of shipyards, with the aim of strengthen the infrastructure to support the maritime sector.

The urgent ordinance also establishes that navigation is an essential service both in relation to the transport of persons and goods and related services and, in particular, This framework establishes that essential services must guarantee at least 75% of normal activity during periods of strike, while for the sectors considered to be of fundamental importance Importance The minimum percentage will be 50%. It is The creation of a guarantee commission that can be declare new activities essential if health strategic supplies or services are compromised.

The new decree has been strongly criticized by the International Transport Workers' Federation (ITF), which has defined the measure as "a reckless act of Deregulation that jeopardizes sovereignty and tramples on fundamental labour rights. The decree - explained the International Transport Union - Reclassification maritime and inland navigation as an "essential service", severely limiting workers' right to strike seafarers, in flagrant violation of the Argentine Constitution and of Convention 87 of the International Labour Organization".

"The decree - denounced the ITF - will allow shipowners to temporarily deprive ships of their Argentine flag and to register them abroad, to expand the authorizations for ships flying a foreign flag and remove nationality requirements for crews".

"On the whole - recriminated the ITF Secretary General, Stephen Cotton - these measures will trigger a race to the bottom in wages and jobs and could cause thousands of jobs to be lost to qualified Argentine seafarers".

The decree was also rejected by the Confederación Argentina de Trabajadores del Transporte (CATT), starting at manner in which it was adopted, i.e. by resorting to to an emergency decree when - denounced the union in a note sent to the Argentine deputies - "To the at the time of its enactment, there were no circumstances that would impede the formation and approval of the laws, nor were valid reasons invoked of necessity and urgency".

The CATT highlighted, among other things, that the decree modifies Article 142 of the Navigation Act No. 20.094 on the Determination of the number of crew members by eliminating - ha specified the union - the mandatory provisions on the number minimum number of crew members of a ship and, above all - has CATT - eliminates the possibility that trade unions negotiate with shipowners guidelines for the integration of the equipment of the crews. "Everything - underlined the - portends a loss of jobs".

In addition, CATT has complained that the emergency ordinance undermines the working conditions of seafarers where it allows, in the event of a "lack of availability" of staff Argentine Suitable, the boarding of foreign personnel by accepting even that the new employment contracts are stipulated with the express exclusion of the work regimes in force in the register Argentine national team. "In this way - explained the - we will find ourselves with a precarious merchant navy, subject to foreign laws and without workers' rights".