Cabotage Reform: Senate Bill Removes Mandatory Argentine Crews but Retains National Flag Reservation – Trade News | 25/10/26

A bill introduced in the Argentine Senate under file S-1844/26 proposes reforming the maritime and inland waterway cabotage regime to allow foreign-flagged vessels to operate between domestic ports without requiring Argentine crew members or contributions to the local social security system. The initiative, developed through technical work by the Federal Investment Council (CFI) and sponsored by Senator Patricia Bullrich alongside 13 other lawmakers, replaces the approach of an earlier deregulation proposal promoted by Federico Sturzenegger’s ministry. Unlike the original draft, which established progressively increasing percentages of Argentine, resident or Mercosur crew members depending on how long foreign vessels operated in the country, the new bill provides that foreign crews will be governed exclusively by the labor legislation of their flag state, subject to the minimum standards of the 2006 Maritime Labour Convention. However, certain activities remain reserved for Argentine-flagged vessels, including fishing, fuel transportation, harbor maneuvering tug services, mooring launches, recreational navigation and pilot boats. The bill also removes the requirement for foreign vessels authorized to perform cabotage beyond a specified period to employ Argentine or resident crews, but does not repeal Decree-Law 19,492/44, which reserves cabotage operations for nationally flagged vessels, marking a major difference from the original proposal. Regarding taxation, it introduces accelerated depreciation for cabotage-related investments and a 25% corporate income tax rate for regular cabotage operators, while excluding previously proposed incentives such as fuel tax exemptions and reduced import duties on vessels. Additionally, the bill allows foreign containers to remain indefinitely under the temporary import regime, establishes that export cargo clearance will be completed at the port of origin and grants legal validity to electronic bills of lading for domestic cabotage operations and intermodal transshipments. It also introduces restrictions on foreign vessels linked to companies not authorized to explore hydrocarbons on Argentina’s continental shelf. Nevertheless, the initiative has not yet been approved and raises regulatory questions in relation to existing legislation, as it neither explicitly defines cabotage nor repeals the law reserving this activity for Argentine-flagged vessels. Link to Article