Argentina ranks high to many businesspeople looking for new international
opportunities. It is the wealthiest nation in all of LatinAmerica on a per capita basis.
The economic stability built on the policiesof the administration of President Carlos Menem,
the liberalization oftrade laws, the reduction of tariffs, the dramatically reduced
inflationrate, and the country's growing economy are all features attractive tothe
international trader.THE RECENT DEVELOPMENTS
As an exporter, Argentina is looking forward to diversify
production and increase exports, especially nontraditional,higher-values-edded exports,
as it revitalizes its economy. As an importer,it demands a wide range of goods to meet
business expansion and upgradesin diverse sectors as well as the wants and needs of its
consumers, particularlythose of its battered but recovering middle class, still the largest
inLatin America. Practically all areas of the economy could benefit fromforeign investment.
1-Privatization: It would be verydifficult to overestimate the enormity of the
privatization process inArgentina over the past 7-8 years. The policy represents and
absolute about face from decades of state owned public enterprise operation.
Argentina's foray into privatization has been fast and complete, and has played a
critical role in the government's economic stabilization plans. Most public
enterprises have been sold, and public procurement projects continue to be available
as the country modernizes, rebuilds its social and transportation infrastructure,water,
and sewerage systems, and cooperates with formerly state-owned corporationsin
the fields of electricity, oil and gas, and telecommunications.
2-Foreign Trade Zones:
Argentinahas an established foreign trade zone in La Plata (Buenos Aires province)
and also has a special regime for certain products in its southernmostprovince, Tierra
del Fuego. It allows the duty-free import of foreign goods destined for specified high
priority industries and it also gives other tax breaks to users of the zones. Plans were
approved during 1996 and 1997for the creation of foreign trade zones in most of
the country's 23 provinces as well as in four other areas of the country. Although of
limited importat present, such zones could play a significant role in international
operations in the future.