Argentine courts halt opening of cabotage to foreign vessels

The Argentine Labor Court twisted the arm of Minister Federico Sturzenegger and suspended the implementation of the decree deregulating the activities of the national Merchant Marine. The government thus suffered a second judicial setback after the court also suspended the dissolution of the National Highway Administration by decree.

On Friday, the 32nd National Labor Court ruled to preemptively suspend key articles of Decree of Necessity and Urgency 340/2025, promoted by Sturzenegger.

This regulation, now suspended, created a new Exception Regime that would have a significant impact on the maritime industry, allowing the use of foreign vessels and foreign crews in Argentine waters.

The precautionary measure responds to an amparo action filed by Merchant Marine unions. The document stated that the decree was issued without respect for the Constitution and violates labor, union, and organizational rights.

The ruling suspends the application of articles 2, 3, 5 to 7, 9 to 11, 14, and 25 to 27 of the DNU, and maintains in force the regulations that these provisions repealed or modified.

The resolution emphasizes that maritime workers are a "socially vulnerable" sector and that the decree was issued while Congress was in session, which exacerbates its illegitimacy.

Judge Viviana Dobarro argued that the reforms promoted by decree could "affect rights guaranteed by the National Constitution and international treaties," and cited Supreme Court jurisprudence on the limited use of DNUs.

The unions emphasized the irreparable damage caused by the opening of the National Cabotage to foreign flags, the unfair competition over crew working conditions, the lack or nonexistence of Collective Bargaining Agreements, the lack of interest in the professionalization and training of workers, and the deterioration of navigation safety.

"It is important that the courts rule in favor of the constitutional and labor rights of Merchant Marine workers and provide us with the first check on the encroachment that this deregulation of the activity entails, which ultimately remains a regulation, but one that runs counter to national interests," said Captain Mariano Moreno, secretary general of the Center of River, Fishing, and Maritime Coastal Ship Captains and Officers.

"On the other hand, this does not excuse the sector from continuing to demand the legislative branch immediately repeal this decree because this ruling, while it sets a limit, does not resolve the underlying issue," the Captain stated, adding that "the workers will continue to fight for the disqualification of this decree, the Defense of National Sovereignty, and the Development of the National Merchant Marine."

It's worth remembering that on July 17, the Argentine courts also suspended the dissolution of the National Highway Directorate, the public entity that regulates road concessions and is responsible for the maintenance of the country's public highways, ordered by decree of President Javier Milei.

In her ruling, Judge Martina Isabel Forns referred to workers as a "socially vulnerable" sector.