Exports to Argentina increased dramatically between 1990and 1995,
following the liberalization of import regulations in 1989. In 1996 they continued to
grow, up to US$ 23.8 billion. 1997 imports into Argentina are forecast at US$ 25.5
The economic reorganization plan decreed by the Menem administration called
for a general modernization of domestic industry, led by the need to upgrade the newly
privatized firms operating in core sectors of the economy. The elimination of most
restrictions on imports was not only a key provision of the overall plan to open
up the economy, but also a necessary precondition to acquiring the capital
goods required to implement the revitalization of industry.
During that time, all important import categories grew significantly.
Since 1994 demand for imported goods has slowed following the initial boom period,
but a demand continues to exist across the board for capital, intermediate, and
consumer goods. In addition, even when domestic industries are filling most of
the current demand in their particular markets, they are increasingly relying on
imported materials and additional markets for foreign suppliers. And the
demand for capitalgoods will continue to be greater than their ability to
produce them for some time.