ARGENTINE MINISTRY
OF FOREIGN AFFAIRS AND WORSHIP

You are here

Argentine Foreign Trade

Foreign trade elasticities in Argentina: a limitation to growth?

Publication´s date: 
Oct 2014
Author: 
Guido Zack y Demián Dalle
Foreign trade elasticities condition the rate of growth an economy can reach in the long term. In the present article, an estimation of price and income elasticities is made for the 1996-2013 period in Argentina. The results show that this country faces an obstacle to reach a rate of growth similar to that of its main trade partners, which cannot be avoided through exchange rate variations. In order to do so, it would be necessary to progress towards more complex links in global value chains and in the meantime, coordinate exchange rate policies as well as policies for foreign trade and capital flow management.
Type: 
ARTICLE
Specific topic: 
General topic: 

What is behind the European trade measures against Argentine biodiesel?

Publication´s date: 
Mar 2015
Author: 
Ivana Doporto Miguez y María Victoria Lottici
The biofuel sector in Argentina, specifically the biodiesel sector, has become one of the most affected by an intensified use of trade measures with a clear protectionist character by the European Union. The antidumping rights imposed by the UE against Argentine biodiesel in 2013 brought about almost a 90% loss of Argentine exports of biodiesel, amounting to US$ 1.9 billion in 2011. Nevertheless, the measures taken up by the European Commission are not exclusively intended to act against the Argentine biodiesel but they respond to an overall protection strategy favouring the European biofuel industry against third party competition, both from developed and developing countries. In turn, the environmental standards –some of them established and others under discussion– of the EU Renewable Energies Directive and the Fuel Quality Directive have become, in practice, non-tariff barriers since they increase the costs of Argentine exports to that market destination. Moreover, to the default values for soy biodiesel set forth in the European legislation adds the controversial accounting of emissions derived from indirect land use change (ILUC) and the limits to first generation biodiesel consumption, which uses raw materials derived from food in its elaboration. The underlying risk of the application of these environmental standards –which pretend to seek a legitimate environmental goal– is that they are set up as disguised barriers to trade with a clear protectionist nature, since these measures attempt to strongly restrict trade and change the competitive relationship between substitute products, at the same time as they have weak connections with the environmental goal declared.
Type: 
ARTICLE

Impact of sanitary and phytosanitary measures, and of technical regulations on Argentine exports of lemons,

Author: 
Verónica Fossati - Carlos Galperín - Gabriel Michelena
Different quantitative impact studies have recently come to the conclusion that sanitary and phytosanitary measures as well as technical regulations may have a restrictive effect on trade in agricultural products, coinciding with the claims made by developing countries in different international forums. This paper focuses on the study of the impact this type of measures have on Argentine exports of fresh lemon, using two complementary approaches: the inventory method and a gravity model. The inventory method confirms the increase in the amount of sanitary and technical measures that affect the Argentine market for lemons, and reveals that most Argentine exports have been affected by at least one measure notified in the period under analysis (1996–2010). The gravity method let us conclude that, due to the sanitary, phytosanitary and technical measures, the value of Argentine exports of fresh lemon to destinations imposing this type of measures would have been 14% lower than to those countries which did not implement them. This confirms the restrictive effect of this type of measures.
Type: 
ARTICLE

Argentine trade by region in the period 1990–2011

Author: 
Carlos D’Elía - Daniel Berrettoni
Over the last three decades, Latin America doubled its share in Argentine exports, soaring from 20% to 40% of total Argentine exports to the world. Apart from this expansion of Latin America as market for Argentine products, qualitative aspects such as the composition and diversification of Argentine exports to the region play a very significant role in Argentine foreign trade. In the Argentine exports that are destined to ALADI countries there is a greater share of industrial goods and the products have a higher technological content as compared to exports to the rest of the world. In particular, the exports to the regional market of medium-technology manufactures, such as motor vehicles, stand out, accounting for 25% of total exports. In contrast, primary products and natural-resource-based manufactures stand out in the composition of exports to the rest of the world, accounting for 83% of total exports and for only 50% of exports to ALADI countries. On the other hand, exports to ALADI countries have a much greater level of product diversification than that shown by exports to the rest of the world, and the quantity of products destined to Latin America is also greater. There is a considerable number of products dependent on the region (either because they are only sold to said market or because the greater amount of exports to the world are destined to that region). Among these products, some high-technology manufactures stand out. Within ALADI countries, significant differences in Argentine exports can be observed. Some destinations show a higher level of diversification and a relatively low share of natural-resource-based products (MERCOSUR countries, Mexico and Bolivia), whereas others (such as Peru and Colombia) show a profile which is more similar to extraregional markets, with greater concentration and a high share of natural-resource-based products. Lastly, the analysis of the main products exported to ALADI markets show that Argentina has high relative preferences in the Brazilian market in relation to its competitors. In contrast, in countries such as Uruguay and Paraguay, in spite of the high preferences, Argentina has a preferential access which is very similar to that of products originating in other countries. In turn, in markets such as Chile, Mexico and Peru, Argentine products compete on an equal footing with their competitors in terms of tariff preferences.
Type: 
ARTICLE
Specific topic: 
General topic: 
Subscribe to RSS - Argentine Foreign Trade