On the day Argentines went to the polls in midterm elections, the country's future seemed to rest on a quieter question than the headlines suggest: would the voters who had swung toward Javier Milei two years ago stay with him? In border provinces like Salta, where a strong currency on one side of the frontier meets a weak one on the other, the answer is being tested by smuggling that hollows out the very businesses that once cheered his reforms. Turnout of 66%, below past midterms, and a restless peso mark an economic experiment still deciding whether its promise of stability can outlast the
Argentina's Midterms Test Milei's Grip as Salta's Smuggling Boom Strains Voter Loyalty
Salta business owners report steep sales drops and lost staff to contraband smuggling, with some voters losing patience with the government.
His government is entering the final stretch of their patience
Mark
Why does a smuggling story in one province matter on election day?
Mimi
Because Salta is a test case. It voted heavily for Milei two years ago, and the question nationally is whether places like it will stay with him.
Mark
What is actually driving the smuggling?
Mimi
A strong Argentine peso and a weak Bolivian currency. Goods come over the border at about half the price local shops can charge.
Luke
Careful with that half-price figure, though. It comes from the reporting on goods in general, not a measured price study.
Mark
And the business owner quoted?
Mimi
Mauricio Loutaif. He says sales are down 40% this year and staff have left to smuggle. He voted Milei in 2023 and is undecided now.
Luke
That's one owner's account. It shows the strain, but it doesn't tell us how many Salta voters feel that way or how they actually voted.
Mark
What about the turnout number?
Mimi
Sixty-six percent, below previous midterms.
Luke
Right, but we don't yet know who that helps. The results will say whether the frustration moved votes.
Le Pouls
- Ballots are being counted in a midterm that observers treat as a referendum on Milei's economic program, with turnout falling short of past contests.
- In Salta, a strong peso and a weak Bolivian currency have turned the border into a channel for cheap contraband that undercuts local shops.
- Shop owners who once backed the president report sales down sharply and staff lost to smuggling work, and their patience is wearing thin.
- Traders are watching the peso closely as results arrive, and the verdict will show whether this frustration is isolated or spreading.
On the day Argentines went to the polls in midterm elections, the country's future seemed to rest on a quieter question than the headlines suggest: would the voters who had swung toward Javier Milei two years ago stay with him? In border provinces like Salta, where a strong currency on one side of the frontier meets a weak one on the other, the answer is being tested by smuggling that hollows out the very businesses that once cheered his reforms. Turnout of 66%, below past midterms, and a restless peso mark an economic experiment still deciding whether its promise of stability can outlast the people paying its costs.
On the day Argentina voted in its midterm elections, a question hung over the count: would voters in traditionally Peronist provinces, who turned to Javier Milei two years ago, stay with him? Salta, on the northern border, is where that question is being asked most sharply.
The vote is widely seen as a test of the president's economic program, which needs a strong showing to hold. Turnout reached 66%, lower than previous midterms, and traders kept their eyes on a turbulent peso as the ballots were tallied.
In Salta, the pressure comes from across the line. The peso is strong while Bolivia's currency is weak, and the gap is fueling a contraband boom. Goods cross the border at roughly half the price local businesses can offer. Salta had voted heavily for Milei, and now shopkeepers, residents and even some of his supporters say the illicit trade has never been worse.
Mauricio Loutaif, a third-generation business owner, says his sales have dropped 40% this year, and employees have quit to join the smugglers. He voted for Milei two years ago and entered these midterms undecided. His view of the president is not hostile, but it is thinning: people are betting on Milei, he says, yet his government is nearing the end of its patience.
His story captures the dilemma. The currency strength at the heart of the program is, at the border, undermining the businesses whose owners backed it. What the count reveals is whether frustration like his is isolated or widespread.
On the day Argentina voted in its midterm elections, one of the questions hanging over the count was whether voters in traditionally Peronist provinces, who swung to Javier Milei two years ago, would stay with him. Salta, in the country's north on the border, is one of the places where that question is being asked most sharply.
The vote is widely seen as a test of the president's economic program, which depends on a strong showing. Turnout came in at 66%, short of what previous midterms drew. Traders were watching the peso, which has been turbulent, as the ballots were counted.
In Salta, the pressure is coming from the border. Argentina's peso is strong while Bolivia's currency is weak, and that gap is fueling a boom in contraband. Products arrive across the line at roughly half the price of what local businesses can offer. Salta voted overwhelmingly for Milei in the presidential race, and it shifted toward him from its earlier leanings. Now shop owners and other residents, including some of his own supporters, say the illicit trade has never been this bad.
Mauricio Loutaif is a third-generation business owner in the province. He says his sales have fallen 40% so far this year. He has also lost employees, who quit to take up smuggling instead. He voted for Milei two years ago, and said he was undecided going into these midterms.
Loutaif's view of the president is not hostile, but it is running thin. "People are betting on Milei," he said, "but I think his government is entering the final stretch of their patience."
His account captures the dilemma facing the government in places like Salta. The same currency strength that is central to the economic program is, at the border, helping to undercut the businesses whose owners backed it. Closures and struggling firms are the visible result, and for some residents the line between legitimate work and smuggling has blurred as wages from contraband pull people out of regular jobs.
What the count will show is whether frustration like Loutaif's is isolated or widespread. The things to watch are whether Milei holds support in the provinces that swung to him in the last presidential race, and how the peso reacts as results come in.
Citations marquantes
People are betting on Milei, but I think his government is entering the final stretch of their patience.— Mauricio Loutaif, Salta business owner
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