Trade & Investment
From The Report: Argentina 2018
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After going through a period of recession in 2016, epitomised by a sharp drop in both trade and investment, the new administration’s market-friendly policies have begun to show positive results, with investment returning to 2015 levels, despite the liberalisation of capital controls. While stronger economic growth has seen imports increase, exports have not risen at a commensurate rate, widening the trade deficit. In this context, improving the country’s global competitiveness in exports remains one of the key challenges for the current administration. Argentina’s large internal market, availability of natural resources, agriculture and agro-industrial potential, and strong human capital – combined with market friendly policies and reforms at the administrative level – should provide the necessary impetus to reopen trade to the rest of the world. This chapter includes a dialogue with Daniel Herrero, CEO, Toyota Argentina and Hernán Vázquez, CEO, Volkswagen Argentina; and an interview with Juan Pablo Tripodi, Executive President, Argentina Investment and Trade Promotion Agency.

Articles from this Chapter

Overview

Gaining ground: Foreign investment rebounds as government looks to enhance productivity
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In the 15 years preceding President Mauricio Macri’s election in 2015, Argentina progressively distanced itself from global supply chains through the implementation of protectionist measures aimed at aligning economic policies with the government’s political agenda. According to the World Bank, Argentina’s export to GDP ratio has continued on a downward trend since registering a high of 28.3% in 2002 to hit 12.7% in 2016. During this period, taxes on exports, import control and strong state…

Analysis

Open for business: Export-focused reforms take effect as the government seeks to establish trade deals with local partners
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Argentina is, and historically has been, a country with limited market openings, which was exasperated with the establishment of protectionist measures between 2000 and 2015. Since taking office in late 2015, the administration of President Mauricio Macri has rolled back some of these in an attempt to remove export duties and foreign exchange controls, for example. The government’s overarching National Productive Plan, which was launched in late 2016, as well its implementation of key reforms in…

Overview

Values and volumes: Daniel Herrero, CEO, Toyota Argentina; and Hernán Vázquez, CEO, Volkswagen Argentina, on long-term strategies to ensure a more competitive and sustainable automobile industry
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Interview :Daniel Herrero andHernán Vázquez How would you characterise the growth potential of the automobile industry? DANIEL HERRERO: The average number of automobiles per 100 inhabitants in Argentina is 27. This is higher than Latin America’s average of 16, but lower compared to Mexico, which stands at 30, and the US at 85, signalling opportunities for growth. Additionally, we should factor in the positive economic direction the country has taken, which is supported by strategic…

Overview

Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable future
OBG
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Decades of growth in trade and foreign investment have seen global economies become more interconnected than ever before. This trend has been reinforced by the steady liberalisation of international trade and investment, at the bilateral, plurilateral and multilateral levels. National economic specialisations, and regional economic and political integration, have broadly proceeded in a single direction since the 1980s. On aggregate, emerging markets have become the main drivers of growth around the world. Limitations Despite the apparent success of trade and investment liberalisation, multilateral negotiations aiming for further openness have…

Overview

Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable future
OBG
plus

Decades of growth in trade and foreign investment have seen global economies become more interconnected than ever before. This trend has been reinforced by the steady liberalisation of international trade and investment, at the bilateral, plurilateral and multilateral levels. National economic specialisations, and regional economic and political integration, have broadly proceeded in a single direction since the 1980s. On aggregate, emerging markets have become the main drivers of growth around the world. Limitations Despite the apparent success of trade and investment liberalisation, multilateral negotiations aiming for further openness have…

Interview

Intelligent integration: Juan Pablo Tripodi, Executive President, Argentine Investment and Trade Promotion Agency, on key export opportunities
OBG
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Interview :Juan Pablo Tripodi What is the role of international trade in President Mauricio Macri’s economic development policy? JUAN PABLO TRIPODI: Argentina is once again becoming an important global player, which means we must create the right conditions and tools to integrate ourselves into the international market. To achieve this, we have been working on an ambitious agenda that requires not only facilitating and attracting investments, but also strengthening the export competitiveness…