Ernesto A. O'Connor* Abstract Trade between South American States and China is an important source of the economic growth for those economies in the 2000s. The main trading partners of Argentina (taking into account the sum of exports and imports) are in descending order: Brazil, China, the United States, Chile, Germany, Viet Nam, India, and Paraguay. Foreign trade of Argentina is all about the economic activities going on within and outside Argentina especially with regards to exports, imports, inter-national trades and so on. Argentina is all of those things, but it is also so much more. Argentina tariff rates for 2018 was 7.42%, a 0.51% decline from 2017. This Alliance is composed of four Latin American countries: Argentina, Brazil, Paraguay, and Uruguay. Argentine exports to Brazil amounted to $9.1 billion while Brazilian exports to Argentina totaled $13.4 billion. Mercosur is an economic and political agreement between Argentina, Brazil, Paraguay, Uruguay and Venezuela. Argentina’s main exports include animal feed, cereals, motor vehicles and parts, petroleum and gas, and soybeans. A wide variety of international banks have presence in Argentina. While Argentina’s location has enabled it to become a top competitor in the global trade market, the partnership with its neighboring countries have helped it tremendously. There is a range of small and medium sized UK companies in Argentina. This guide gives you an overview of Argentina’s economy, including the country’s primary imports and exports. From a political point of view, Argentina is as exciting as a football match between Real Madrid and Barça for a football fan. Assessment of Commercial Policy Argentina’s trade surplus, as of May 2009, rose 139% from the 2008 levels to $2.48 billion due to a sharp drop in imports, in the wake of the economic meltdown. Additionally, it has industrial production in sectors such as cars, nuclear industry, and an emerging digital service sector. Further economic and trade information can be found in our Argentina trade/economic fact sheet [PDF]. Those problems include in particular: For more details, see MADB fiche on Trade Barriers. In 2019, EU-Argentina bilateral trade in goods totalled € 14.3 billion. Argentina was the first Latin American country to formalise relations with the EU under a 3rd generation cooperation agreement. Canadian imports from Argentina had a value of $1.7 billion in 2018, of which the vast majority were metals (princ… Non-automatic import licences applied to around 1500 tariff lines, affecting almost 26% of EU exports to Argentina, Mandatory preferences for local companies in public procurement. local content requirements in the car and car-part sector to obtain tax advantages. , The Obama administration suspended Argentine participation in the Generalized System of Preferences (GSP) in 2012, citing a failure to pay arbitration payments awarded by the World Bank's ICSID to a number of U.S. firms adversely impacted by the 2002 devaluation of the peso. Argentina posted an overall $16-billion trade surplus for 2019, reversing a -$3.7 billion deficit incurred one year earlier. As such, the country’s economic … With annual exports of $60.8 billion and imports of $62.5 billion, the country has a negative trade balance of -$1.7 billion. Other imports include consumer goods and transportation. From a continental perspective, almost a third (31.1%) of Argentina’s total imports by value in 2019 were purchased from Asia. Mercosur is also engaged in FTA negotiations with other trading partners such as the EU. Gold Reserves in Argentina averaged 46.85 Tonnes from 2000 until 2020, reaching an all time high of 61.74 Tonnes in the third quarter of 2011 and a record low of 0.28 Tonnes in the fourth quarter of 2001. Exports to Brazil helped lessen the impact of the crisis on the industrial sector somewhat, though Argentina's intra-Mercosur trade yielded it a cumulative US$15 billion deficit from 2004 to 2008. In May 1997, the U.S. suspended 50% of Argentina's GSP benefits because of its allegedly unsatisfactory pharmaceutical patent law. The record for this figure was logged in 1998, when the U.S. reaped a nearly US$3.7 billion surplus; these later declined significantly, to then recover to US$3.5 billion by 2011. The Canadian Commercial Corporation serves Argentina through its office in Lima, Peru. Includes websites and other resources where U.S. companies can get more information on how to take advantage of these agreements. Argentina is located in South America and sits at position 42 in exports and is majorly in exports machinery, organic chemicals, motor vehicles, natural gas, plastics and petroleum. Find out about economic and trade-related information, along with the current business situation and general travel tips and facts for Argentina. Argentina’s top four export partners are Brazil, the EU, the US, and China. Benefits of Trading in Argentina Argentina has trade treaties with 56 other nations. Main International Economic Cooperation Argentina is one of the founding members of Mercosur and is a member of the Latin American Integration Association (ALADI). Problems in the protection and enforcement of Intellectual Property rights, including delays in patent proceedings and inadequate protection of geographical indications. Argentina is currently our 40th largest goods trading partner with $13.1 billion in total (two way) goods trade during 2019. Argentina also has important mineral resources such as gold, copper and lithium and respectively the 2nd and the 4th largest shale gas and shale oil reserves in the world. The following types of Argentine product shipments represent positive net exports or a trade balance surplus. The United States enjoys a trade surplus with Argentina, and is Argentina’s number three goods and services trading partner (behind Brazil and China). Argentina tariff rates for 2016 was 7.53%, a 0.18% increase from 2015. Argentina's trade surplus narrowed to USD 612 million in October 2020 from USD 1768 million in the same month of the previous year, and below expectations of a USD 912 million surplus. Argentina’s continuing dispute with investors who did not accept the 2005 and 2010 restructurings of its foreign obligations has led to Argentina being currently ineligible for coverage under U.S. programs (Exim Bank, OPIC and the Trade Development Agency) designed to assist American companies. It is a member of the World Intellectual Property Organization and signed the Uruguay Round agreements in December 1993, including measures related to intellectual property. China, Brazil and Argentina: Agricultural Trade and Development? It is an alliance that was created in 1991 to create a free trade area between its members. U.S. goods and services trade with Argentina totaled $23.4 billion in 2019. As a recognized ‘middle p… This includes over 30 FTSE 100companies such as BT, GSK, HSBC and Unilever.  Accordingly, the system of non-automatic import licensing was extended in 2011, and regulations were enacted for the auto sector establishing a model by which a company's future imports would be determined by their exports (though not necessarily in the same rubric). See the TPR gateway for explanations and background Search Documents Online These links open a new window: allow a moment for the results to appear. The EU exports to Argentina mainly manufactured goods, such as machinery and transport equipment (44%) and chemical products, including pharmaceuticals, (24%) (2019 data).  Petrochemicals are the leading Argentine export to the U.S with large parts including bamboo., and wine the leading Argentine consumer good in the U.S. market. The climate of slack domestic demand that prevailed in Argentina throughout the 1980s resulted in a cumulative US$38 billion in surpluses from 1982 to 1991; this brought the economy little direct benefit, however, as much of this was deposited abroad during that era of interest payment burdens and financial instability.. In 2018, the EU imported services from Argentina of a value of €2.2 billion, while it exported services worth €5.3 billion. The important mineral resources present in the country include lead, zinc, tin, copper, iron ore, manganese, petroleum, uranium, and lithium. Argentina adheres to most treaties and international agreements on intellectual property. In the area of trade Mercosur's purpose is to promote free trade and the fluid movement of goods, people, and currency between its members. Export Development Canada serves Argentina from its São Paulo, Brazil, offices and travels to the market on a regular basis. The main export partner countries are Brazil (around 26%) US (around 15%), Germany (around 4%) and China (around 11%). After several military governments, and highly instability periods as hyperinflation and the commercial liberalization of the nineties, Argentina had it worst crisis in 2001. The main export partner countries are Brazil (around 26%) US (around 15%), Germany (around 4%) and China (around 11%). The following types of Argentine product shipments represent positive net exports or a trade balance surplus. The overall exports dropped by 18% in May 2009 to $5.14 billion, while imports fell by 49% to $2.66 billion. Agriculturally and thinly populated, Argentina recorded trade surpluses for most of the period between 1900 and 1948, including a cumulative US$1 billion during World War I and US$1.7 billion during World War II. Investment. Argentina and the United States have maintained bilateral relations since the United States formally recognized the United Provinces of the Rio de la Plata, the predecessor to Argentina, on January 27, 1823.. Relations were severely strained in the era of World War II, when Argentina refused to declare war on Nazi Germany, and became the only Latin American nation not to receive American aid. The GOA’s policy of tying approvals to changes in the trade balance and foreign exchange levels has added to uncertainty. The quota was reinstated in early 2002 and has since averaged 28,000 tons. The overall exports dropped by 18% in May 2009 to $5.14 billion, while imports fell by 49% to $2.66 billion. The capital city is Buenos Aires and they have exports of around $71billion. Table reflects only those months for which there was trade. A market overview of Argentina for Australian exporters. Trade Agreements. The Framework Trade and Economic Co-operation Agreement between the EU and Argentina entered into force in 1990 and includes two recurrent principles of their cooperation: the strengthening of democracy and human rights, as well as regional integration. Business. Imports shrank 2.8 percent over a year earlier to USD 4004 million due to lower purchases of consumption goods (-7.7 percent), capital (-10.9 percent), and gasolines (-36.3 percent). Recession helped lead to a US$1 billion surplus in 2000 and another US$6 billion in 2001; but it was too little, too late. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports. Modest Argentine surpluses with China turned into deficits in 2008, however, and anti-dumping measures enacted subsequently triggered a Chinese boycott of its top Argentine import, soy oil, in 2010. Other full members include Brazil, Paraguay, and Uruguay. Argentina will host the biennial World Trade Organization and the G20 summit in 2018. With annual exports of $60.8 billion and imports of $62.5 billion, the country has a negative trade balance of -$1.7 billion. The last such meeting was held in 2017. Includes websites and other resources where U.S. companies can get more information on how … Argentina's trade surplus narrowed to USD 612 million in October 2020 from USD 1768 million in the same month of the previous year, and below expectations of a USD 912 million surplus. You may think of Buenos Aires, picture gauchos (skilled horsemen) on the plains herding cattle, or hear a song from Evita! NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. An EU-Mercosur Association Agreement could greatly benefit both sides by removing tariff and non-tariff barriers and improving conditions for bilateral trade an investmen… Argentina's main trade partners include Brazil, U.S.A., Chile, China, and Germany. The country signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).  The nation's perennial trade deficit in manufactures widened during this expansion, however, and exceeded US$30 billion in 2011. The United States has a services trade surplus of an estimated $5.0 billion with Argentina in 2019, down 10.8% from 2018. Argentina is located in South America and sits at position 42 in exports and is majorly in exports machinery, organic chemicals, motor vehicles, natural gas, plastics and petroleum. In recent years, trade between the two countries decreased as commodity prices fell and Brazil experienced slower economic growth. As can be seen from the above initiatives, the current government has identified that increasing foreign participation in Argentina will play an essential role in improving the economic state of Argentina. 2020 : U.S. trade in goods with Argentina . Since 1996 Chile has had an economic complement agreement with the MERCOSUR alliance. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports. Argentina TPR documents > search > help back to top. Since Argentina fixed its currency to the U.S. dollar, it has become much more attractive for foreign investment. Argentina's main imports include industrial supplies and machinery these account for over half of their imports. Over 65 Australian companies operate in Argentina, including 10 ASX200 companies. The fixed exchange rate (1 peso to the dollar) allowed for a macroeconomic stabilization. Trade in services was rather stable between 2016 and 2018. 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