argentina: global perspectives
Post on 05-Jan-2022
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Ministerio de Producción
Secretary of Industry
Lic. Martín Etchegoyen
Argentina: Global Perspectives
ARGENTINEAN
FEATURES:
•GDP: USD 569.5
billion (est. 2015)
•GDP pc: USD 13,202
(est. 2015)
•Rise of middle class
income
•High life expectancy
(+77)
•Population: 43 million
•Area: 2.8 million km2
ARGENTINEAN
STRENGTHS:
• Domestic market
• Natural resources
• Manufacturing
• Trained human
resources
• R+D
Source: CEU-UIA based on the CIA and SUINV
2
ARGENTINA: STRETEGIC PARTNER IN A REGION WITH PROMISING PROSPECTS
There are increasing business opportunities with Brazil, Argentina's main trading
partner, to complement each other and to specialize in specific manufactured goods
• As a member of MERCOSUR, Argentina
has access to a tariff free market,
accounting for over 282 million consumers
and a combined GDP of USD 3.1 trillion
(2014)
• Remarkable industrial
complementarities with Brazil and further
opportunities for specialization
Source: SUINV based on IMF and World Bank
MERCOSUR: Common market
Members: Argentina,
Brazil, Uruguay,
Paraguay, Venezuela
Associates: Bolivia,
Chile, Colombia,
Ecuador, Peru 3
STRONG REGIONAL LINKS
Argentina presents profitable investment opportunities in a variety of strategic sectors serving the global economy
Agro Industry
Value added and design manufactures
Renewable Energies
Professional services, software and IT
Creative Industries
Agricultural machinery Autoparts
Pharmaceutical Industry
Tourism
Biotechnology
Source: SUINV based on IMF and World Bank
4
DIVERSIFIED ECONOMY TO MEET GLOBAL MARKETS NEEDS
Textile - Clothing
Poultry and bovine meat Plastics, chemicals and
petrochemicals
Iron and steel sector & metallurgical industry
Soybean & oil industry
5
OTHER IMPORTANT INDUSTRIAL SECTORS
Employment:
•Manufacturing sector employed 1.25 million workers in 2015, about 20.1 percent of total employment in the private and formal sector.
•Manufacturing has a higher capacity of creating indirect jobs (2 per every direct new employee) than other sectors such as Construction (0.58) or Retail & wholesale (0.11).
Value added:
•The manufacturing sector accounts for 22,3% of the gross value added in the economy (2014).
Foreign trade:
• In 2015, Manufacturing explained 72,2% of the exports and 71,1% of the imports in the country.
6
THE MANUFACTURING SECTOR IN NUMBERS
Welcoming investors: protection and equal rights for foreign investors
The Argentine Constitution guarantees equal treatment and rights for local and foreign
investors
Foreign Investments Act (No. 21382) defines the legal framework for foreign investments
Foreign investors may:
Remit abroad liquid profits arising from return on their investment as well as repatriate their
investment
Avail themselves of any of the legal forms of incorporation foreseen by Argentine legislation
Make use of domestic credits and loans with the same rights and under the same conditions
as domestic companies of domestic capital
Access to all sectors of economic activity as there are no activities reserved exclusively for
local enterprises
Source: SUINV
7
PUBLIC SECTOR SUPPORTIVE OF INVESTORS
Horizontal incentives
Investment Promotion Law (No. 26360): early VAT return and/or accelerated depreciation allowances for investment on capital goods and infrastructure
0% tariff on imports of capital goods
0% tariff on imports of goods which are part of a large investment project
For every new job created, 50% reduction on employers’ contributions during the first year of employment and a 25% reduction in the second year
Buy National: preferential procurement by companies based in the country to the National State in strategic sectors
Others: FONTAR, FONSOFT, SEPyME programs, incentives to foster employment and exports (for further details please see “Investment Incentives” published by SUINV
Sector incentives
Specific benefits and incentives for diverse sectors: automotive and autoparts, software, biofuels, biotechnology, mining, forestry, public infrastructure and hydrocarbons
Provincial tax exemptions for a determined period of time
•Gross income
•Stamp tax
•Property tax
Financial support for infrastructure investments and purchase of relevant equipment
Source: SUINV
8
PUBLIC SECTORS INCENTIVES
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