BUENOS AIRES, May 28, 2025 (Reuters) — President Javier Milei signed a sweeping deregulation decree Tuesday that eliminates or modifies 340 federal regulations covering labor markets, import licensing, commercial rents, pharmaceutical pricing, and state procurement — the most aggressive single act of regulatory rollback of his presidency and one that immediately triggered legal and political warfare.
The decree, published in the Official Gazette within hours of signing at a ceremony in the Casa Rosada's White Hall, extends trial periods for new hires from three months to one year, eliminates mandatory union dues deductions from paychecks unless workers explicitly opt in, and abolishes price controls on 287 categories of consumer goods including pharmaceuticals, medical devices, household appliances, and basic foodstuffs.
"For 20 years, Argentine businesses have operated inside a straitjacket of regulations written by people who never ran a business," Milei said at the signing ceremony, flanked by Economy Minister Luis Caputo and Labor Minister Omar Yasín. "Today, we cut the straps. We're not asking permission. We're giving freedom."
The announcement triggered an immediate legal and political backlash. The CGT labor federation, Argentina's largest union confederation with 3.2 million affiliated workers, filed a constitutional challenge with the Supreme Court within four hours of the decree's publication, arguing that the labor provisions violate constitutional protections for workers' associations and exceed the president's emergency powers under Article 99.
CGT Secretary-General Héctor Daer called the decree "not deregulation — destruction" at a press conference outside the labor courts, vowing to fight it in every courtroom and every street. The CGT announced a nationwide strike for June 5.
The General Confederation of Industry (CGI), representing large manufacturers with combined revenues of $84 billion, offered qualified support for the commercial provisions but expressed concern about the elimination of import licensing requirements for steel, aluminum, and petrochemical products. Industry leaders warned that opening imports without transition periods could flood the market with subsidized Chinese steel, undercutting domestic foundries.
Supreme Court Chief Justice Horacio Rosatti said the court would hear oral arguments on the challenge on June 10, with a ruling expected by the end of June. The court struck down portions of Milei's January DNU on procedural grounds but has generally upheld the president's authority to issue emergency decrees within constitutional bounds, creating uncertainty about how it will rule.
Business groups welcomed the rent control abolition, which had frozen approximately 2.4 million lease contracts in Buenos Aires at below-market rates established in 2020. Property owners said the change would unlock investment in rental housing, while tenants' associations warned of immediate evictions and rent spikes that could displace working-class families. Real estate data showed listings jumping 40% in the days following the decree's announcement.
