He Government has taken a significant step in its deregulation agenda by making official the complete deregulation of the postal mail service. This measure, announced by presidential spokesperson Manuel Adorni and confirmed by decree 1005/2024 published in the Official Gazette, seeks to promote competition, digitalization and security in the postal sector.
The deregulation of the postal mail service is part of the broader process of deregulation of the public administration and companies associated with the State carried out by the Government of President Javier Milei, with the Minister of Deregulation and Transformation of the State, Federico Sturzenegger, at the head.
This process has included similar measures in other sectors, such as the deregulation of airport ramp service, which was recently announced. The main objective of the deregulation of the postal service is to increase competition in the sector.
According to Adorni, “with this measure we will achieve more competition, greater digitalization and better security in postal matters.” The regulations seek to eliminate the barriers to entry into the market that have restricted competition and have resulted in a poorer quality service and higher prices for users.
Correo Argentino, the state company that has dominated the postal sector in Argentina, will be directly affected by this measure. The company, which has 1,452 branches and 3,675 postal units nationwide, has faced significant challenges in recent years, including an 80% reduction in letter transportation volume and a sizeable budget deficit..
In response to these challenges, Correo Argentino has begun a process of modernization and financial sanitation, with the aim of balancing its accounts by the end of the year. Deregulation will allow new companies to enter the postal market, which is expected to boost competition and improve service quality.
Substitutions
In addition, a change is expected in the business model of Argentine Mailwhich will include the replacement of many of its traditional offices with mail windows installed in bookstores, warehouses, service stations and other locations. This change seeks to increase the geographic reach of the postal service and reduce operating costs.
The deregulation of the postal mail service has generated various reactions. On the one hand, some sectors applaud the measure, arguing that it will allow greater competition and improve the quality of service. On the other hand, there are concerns about the impact that this measure will have on Correo Argentino workers and on the quality of service in rural and remote areas.
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