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Your WPG correspondent was in New York City during the World Cup finals. Bars all over town were stuffed with Argentine fans in the light blue jerseys of the national team. Jubilant one minute, forlorn the next—sadness should give way to pride that the team was just the length of a goal post away from the champion’s trophy.
Pride and optimism have been in short supply in Argentina, as its economy has been in a funk for the past year and more. The primary market challenges arise from slowing economic growth and import and foreign exchange restrictions the Government of Argentina (GOA) imposed in late 2011 and early 2012. Growth slowed markedly in 2012 to 1.9 percent (from 8.9 percent in 2011) and continued at 3.0 percent in 2013, according to official GDP. Strong commodity prices and automobile exports to Brazil had contributed to Argentina’s rapid growth over the past several years, but these sectors have struggled.
Fears of a fresh debt crisis in Argentina intensified after a ruling by the U.S. Supreme Court left South America's second biggest economy facing the choice of paying so-called "vulture funds" in full or risk a fresh debt default. These funds purchased Argentina debt at deeply discounted prices but don’t want to take the haircut the government is offering.
Non-automatic import licenses (NAILs) were ended in late 2012 for all but a few products, but a regime erected by the GOA in February 2012, whereby all importers are required to request approval from the Argentine Tax and Customs Authority (AFIP) prior to making each purchase for import from abroad, is still in effect and constitutes import licensing in all but name.
This system is the subject of a WTO complaint by the U.S., the EU, and Japan against Argentina. Moreover, the GOA’s policy of tying import application approvals to changes in the trade balance and foreign exchange levels has added to the uncertainty. Sustained inflation of over 30 percent has raised unit labor costs and made Argentine goods less competitive.
Despite current problems and uncertainty, Argentina remains an attractive market for U.S. and other exporters given its relatively large and educated population of 42 million, abundant natural resources such as in agriculture, mining, and unconventional hydrocarbons, and important infrastructure needs. As Argentina resolves its issues going forward opportunities will increase. This is a good time to explore the market and establish relationships that will enable profitable operations in the future.
Current conditions make it a smart business move to consult the U.S. government’s Commercial Service at the embassy in Buenos Aires. Their experts can help you navigate the thicket of regulations confronting importers and make sure you are treated fairly. They can also introduce you to pre-screened buyers for your products or services.
The industry sectors listed below provide the best opportunities for exports from the United States to Argentina in the short (within the year) and medium (one-to-two-year) term. U.S. Commercial Service Argentina prepares country and industry market research reports and provides customized solutions to help you take advantage of these business opportunities.
• Agricultural Machinery and Parts
• Electronic Security Equipment
• Food Processing Equipment
• Information and Communications Technology
• Medical Technology
• Technology for Development of Non-conventional Hydrocarbons
• Travel and Tourism Services
The U.S. and Argentina share a mutually-beneficial trade relationship with total trade in goods reaching $14.8 billion in 2013. Two-way trade in private services between the two countries totaled an estimated $9 billion in 2013, with the U.S. exporting $7.1 billion to Argentina and importing $1.9 billion. The U.S. supplies raw materials, intermediate goods, and capital goods to feed Argentina’s industrial sector, while Argentina exports food and agricultural products as well as intermediate goods to U.S. industry.
The U.S. enjoys a trade surplus with Argentina. Approximately 90 percent of its exports to Argentina are destined for local industry and agriculture such as computers, industrial and agricultural chemicals, agricultural and transportation equipment, machine tools, parts for oil field rigs, and refined fuel oil. Argentine exports to the U.S., meanwhile, include goods such as wine—Argentina is one of the largest exporters of wine to the U.S. and you should try the Malbec—fruit juices, crude oil, and intermediate goods such as seamless pipe, tubes, and other iron and steel products.
U.S. investment makes a large contribution to Argentina’s economy. Over 500 U.S.-based companies currently operate in Argentina, employing over 155,000 Argentines. The stock of U.S. investment in Argentina reached $14.4 billion in 2012 (latest data available) and is concentrated in the energy, manufacturing, information technology, and financial sectors.
In addition to the services of the U.S. Embassy, the U.S. Export-Import Bank is open for short-and medium-term financing for U.S. exports to private sector clients in Argentina, but not for entities tied to the GOA. The Overseas Private Investment Corporation (OPIC) offers assistance to U.S. private investors in the form of political risk insurance, as well as loans and loan guarantees for their direct investment in Argentina.
Marketing U.S. products and services in Argentina requires a high level of research, preparation, and involvement. In addition:
• Ensure that your customers fulfill all import requirements before you ship any product and follow all regulations precisely.
• Use Argentine agents, representatives and distributors who know the ropes and can deal with the paperwork.
• Close personal relationships are important for success as Argentines prefer to do business with people they have met face-to-face and know well.
• Consider Argentina’s unique economic, demographic, and cultural characteristics that distinguish it from other Latin American countries.
• It is increasingly difficult to establish a "typical customer" due to new consumption habits and to the dynamics of income distribution and demography.
• An important component of the marketing mix is promotion. You should attend or exhibit at local and regional trade shows as well as visit trade shows in the U.S. attended by Argentine buyers.
• Protect your intellectual property and engage qualified local professionals and lawyers in contract negotiations.
Similar to many countries around the world, Argentina in its present condition may not be a market for beginning exporters or those with low risk thresholds. But team Argentina came through for its fans, and now the rest of the country needs to dig deep to find its strengths and its resilience, again.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PCMF101207B bearing | 10 | 12 | 7 |
| PCMF081009.5E bearing | 8 | 10 | 9.5 |