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Business Profile
Economy: Argentina is rich in natural resources and also has a large and profitable agricultural sector; the country is one of the world’s major exporters of wheat and also produces maize, oilseeds, sorghum, soya beans and sugar. Beef is no longer the dominant trading commodity that it once was, but animal products are still a valuable export earner. Agricultural goods aside, Argentina exports textiles and some metal and chemical products. These, along with oil refining and vehicle production, are also the main components of Argentina’s manufacturing industry. Hydroelectricity and coal meet the bulk of the country’s energy requirements. Brazil is the largest of Argentina’s South American trading partners. There are also important trading relationships with the USA, which is the main source of manufactured products, and the countries of the former Soviet Union, which buy large quantities of grain. Elsewhere, trade with Japan and the EU – especially Germany and The Netherlands – has grown rapidly in recent years. For all the potential of the Argentinian economy, it has been historically blighted by two major problems: high inflation and a massive foreign debt. The most successful attempt to tackle these twin scourges was made during the mid-1990s by the Menem government. The structure of the economy had been characterised by major state involvement: the Menem government now started to dismantle the public sector, selling off some industries and opening others to competition. The accumulated receipts, together with swingeing cuts in public spending, allowed for a reduction in the foreign debt. The other key components of Menem’s economic policy were the fixing of the Peso’s value to the US Dollar and an overhaul of the country’s financial system. While these measures proved effective, they caused considerable hardship for much of the population. By the end of the 1990s, inflation appeared to have been truly purged from the economy. But the policy of peso-dollar parity had unintended side-effects which led to a sharp fall in exports and in government tax revenues as well as a large increase in government debt, pushing the economy into recession. With external debt topping US$130 billion at the end of 2001, Argentina was on the point of defaulting. The Duhalde government managed to avoid default (which would probably have led to a complete economic collapse) but faces a long period of stringent austerity under the supervision of the IMF. The main losers will be the ordinary Argentinian people, over one-third of whom are now living below the official poverty line.
Business: Business cards are usually given and businesspeople expect to deal with someone of equal status. Punctuality is expected by visitors. Literature is in Spanish although many Argentinian businesspeople speak English as a second language. Office hours: Mon-Fri 0900-1900.
Commercial Information: The following organisation can offer advice: Cámara Argentina de Comercio (Chamber of Commerce), Avenida Leandro N. Alem 36, 1003 Buenos Aires (tel: (11) 5300 9000; fax: (11) 5300 9058; e-mail: centroservicios@cac.com.ar; website: www.cac.com.ar).
Conferences/Conventions: For more information, contact the Secretaría de Turismo de la Nación (see Contact Addresses section).
Copyright © 2003 Columbus Publishing Ltd.
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