WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/277 
13 February 2013 
 (13-0669) 
Trade Policy Review Body Original:   Spanish 
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
ARGENTINA 
 
 
  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Argentina is attached. 
 
 
Note: This report is subject to restricted ci rculation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Argentina.   Argentina WT/TPR/G/277 
 Page 3 
 
 
  CONTENTS 
  
  Page 
I. INTRODUCTION 5 
II. ECONOMIC ENVIRONMENT AND COMPETITIVENESS 5 
 (1) I NTRODUCTION  5 
 (2) G LOBAL ECONOMIC ENVIRONMENT  6 
 (3) M ACROECONOMIC PERFORMANCE 2007-2012 6 
 (i) Economic growth with social inclusion 6 
 (ii) Trends in foreign trade 9  (iii) Trade promotion 13 
 (iv) Financial situation 14 
 (v) Fiscal soundness 15  (vi) Employment and social policy 15 
 (4) S
ECTORAL PERFORMANCE  17 
 (i) Agricultural sector 17  (ii) Manufacturing sector 20 
III. FOREIGN TRADE POLICY 23 
 (1) A
RGENTINA AND THE G-20 23 
 (2) A RGENTINA AND THE WTO 25 
 (i) Regular committees 25  (ii) Dispute settlement 26 
 (iii) The Doha Development Round 27 
 (iv) Surveillance and transparency 28 
 (3) A
RGENTINA AND REGIONAL INTEGRATION  29 
 (i) Argentina and MERCOSUR 29 
 (ii) The LAIA and extra- regional agreements 32 
IV. CONCLUSIONS 33 
 
  Argentina WT/TPR/G/277 
 Page 5 
 
 
  I. INTRODUCTION 
1. Since its last Trade Policy Review, the Ar gentine Republic has expanded the model of 
economic growth with social inclusion introduced in 2003. 
2. Despite an adverse international background, de fined by the outbreak of the international 
crisis in 2008, the policies implemented during the review period resulted in high rates of economic 
growth, a sustainable and genuine improvement in co mpetitiveness, and a favourable trend in all the 
social indicators. 
3. The first part of this report contains a description of the macroeconomic performance of the 
growth-with-social-inclusion model.  In this sect ion the country's general economic situation is 
reviewed and the main production, financial and fi scal aspects, trends in foreign trade, trade 
promotion and employment policies and the performance of the social indicators are all described. 
4. The trends in the agricultural and manufactur ing sectors are then outlined, with special 
emphasis on the creation of new institutions and the policies adopted to boost their growth. 
5. The third part of the report is devoted to fore ign trade policy.  In this section Argentina's 
multilateral and regional activities are described and, in  particular, its participation in the G-20 and its 
active role within the framework of the WTO's multil ateral trading system and the Doha Development 
Round negotiations.  At the same time, an acc ount is given of Argentina's commitment and 
contribution to regional integration processes, bot h within MERCOSUR and in connection with the 
efforts to establish new integration areas such as the Union of South American Nations (UNASUR) 
and, in Latin America and the Caribbean, the Comm unity of Latin American and Caribbean States 
(CELAC). 
6. Finally, the conclusions of the report are presented. 
II. ECONOMIC ENVIRONMENT AND COMPETITIVENESS 
(1) INTRODUCTION  
7. The policies pursued since 2003 have been r esponsible for unprecedented economic growth 
and job creation, while achieving significant improve ments in all the social indicators and reversing 
the process of de-industrialization that the country had been experiencing since 1976. 
8. The general approach was characterized by a consistent macroeconomic policy sustained by 
the growth of foreign demand and the domestic mark et;  a dynamic trade policy;  strong development 
of industry and production;  and an income policy that promoted social inclusion. 
9. This combination of measures, which required th e State to play an active role in the economy 
- in complete contrast to the policy that prevailed in the 1990s - resulted in a cycle of growth and an 
improvement in the quality of life on a scale never previously experienced. 
10. It should be noted that these results were achi eved within an adverse international context 
created by the economic crisis that erupted in the developed countries in 2008. 
11. The National State has assumed a strategic role in defining the common objectives and 
coordinating the activities of the public and private players, with a view to strengthening the WT/TPR/G/277 Trade Policy Review 
Page 6 
  
  productive framework, incorporating greater va lue-added, generating quality employment and 
promoting dynamic integration into global trade flows. 
12. This strategy has intensified the growth pro cess with the result that Argentina is making a 
relative contribution to global demand more than proportional to its size, thereby promoting increased 
trade flows and world growth. 
13. In short, the results achieved since 2003 and, in  particular, during the review period, indicate 
that Argentina is on the right track. 
(2) GLOBAL ECONOMIC ENVIRONMENT  
14. The eruption of the international economic crisis  in 2008, with its epicentre in the developed 
countries, and the difficulty in finding solutions capable of putting the global economy back on the 
path of growth confronted Argentina and the deve loping countries with a great challenge in achieving 
their policy goals. 
15. The global crisis clearly revealed the inadequ acies of models that disregard the role of 
the State.  In fact, it was triggered when the fi nancial processes of global speculation, in the absence 
of all State control, reached a limit as a means of creating growth. 
16. The process of fiscal adjustment applied to the developed country economies since 2010 has 
had obvious consequences for the real sector:  in  2011, the global economy slowed down, growing by 
only 3.9% as compared with 5.3% in the previous year.  Thus, during 2011 the global economy remained weak as a result of new episodes of financia l stress, with Europe failing to recover and the 
United States economy continuing to show signs of fragility, thereby creating a latent threat of a 
further relapse in the world economy. 
17. Similarly, the prospects for 2012 are that  several developed economies will experience 
recession:  the most optimistic estimates indicate that  GDP in the Eurozone will contract by 0.3% on 
an annual basis, while growing by 2.0% in Japan and barely 2.1% in the United States. 
18. For their part, the developing countries are still expected to grow, despite a certain slowdown 
during 2011 due to the economic environment described above. 
19. Despite the crisis, in 2011 Argentina was able to  maintain the high rate of expansion of the 
previous year.  With plus 8.9%, it was one of the Latin American countries with the highest rates of growth.  Thus, between 2003 and 2011, GDP grew at an average rate of 7.7%, while per capita GDP 
accumulated a 66.2% increase. 
20. The country's macroeconomic performance duri ng the review period is summarized below. 
(3) M
ACROECONOMIC PERFORMANCE 2007-2012 
(i) Economic growth with social inclusion 
21. Since the last Trade Policy Report, Argentin a's economy has continued along the path of 
growth.  Between 2007 and 2011, real  GDP expanded at an average annua l rate of 6.4%.  Moreover, it 
should be noted that after the slowdown caused by the international economic and financial crisis 
during 2009, high growth rates were again recorded in 2010 and 2011 (9.2% and 8.9%, respectively). Argentina WT/TPR/G/277 
 Page 7 
 
 
  22. This performance can be attributed to the c onsistency of the Government's economic policy 
decisions, taken in a critical global context, wh ich propped up domestic de mand while managing to 
maintain the good performance of the external sector. 
23. This favourable trend has extended into the current  year.  In the first half of 2012, real GDP 
rose 2.4% relative to the same period in 2011, an d, according to budget estimates, will end the year 
with an increase of 5.1%.1 
359,170 383,444 386,704 422,130 459,571 449,493 460,425 
200,000250,000300,000350,000400,000450,000500,000
2007 2008 2009 2010 2011 2011* 2012*GDP
Million pesos 1993
Source : National Institute of Statistics and Censuses (INDEC).  *F i r s t  h a l f .
 
24. During the period 2006-2011, per capita GDP - measured in US dollars - doubled, rising from 
US$5,424 in 2006 to US$10,896 in 2011. 
25. It should be noted that every sector of activ ity, except for mining and quarrying, grew 
during the period 2007-2011;  this trend was part icularly significant in financial intermediation 
(55.9%), transport and communications (44.4% ), retail and wholesale trade (39.5%), and 
manufacturing (26.7%). 
                                                      
1 Ministry of the Economy and Public Finance (2012), 2012:   Presupuesto:  Resumen .  Viewed at:  
http://www.mecon.gov.ar/onp/html/presupresumen/resum12.pdf. WT/TPR/G/277 Trade Policy Review 
Page 8 
  
  -5.0%2.7%9.9%14.4%15.8%17.5%19.1%19.3%21.0%25.4%26.7%39.5%44.4%55.9%
-10% 0% 10% 20% 30% 40% 50% 60%Mining & quarryingAgric. livestock, hunting, forestryFishingConstructionElectricity, gas & waterOther servicesPublic adm. & defenceEducation, social & health ss.Real estateHotels & restaurantsManufacturingWholesale & retail tradeTransp. & communicationsFinancial intermediation
Source: INDEC.Gross value-added, by sector
(Change % 2007-2011)
 
26. Sustained growth also generated strong invest ment.  During the first years of recovery, 
from 2003 to 2005, the improvement in the domestic market offered businesses a robust demand met 
mainly by utilizing idle existing capacity and running machinery for longer periods of time. 
27. However, as companies expanded the use of th eir installed capacity, it became necessary to 
progress to new investment.  Thus, from 2005, pro duction was mostly maintained by creating new 
productive capacity.  As a result of this process, in 2011 fixed investment exceeded the peak achieved 
under convertibility (1998) by 85%, reaching 23% of GDP (at current prices). 
28. These levels of investment are a clear sign of the growth potential of the economy in the 
medium term and a significant indicator of business expectations and hence the country's prospects 
for growth. 
81,187 88,553 
79,527 96,409 112,366 
105,814 
98,122 
20,00030,00040,00050,00060,00070,00080,00090,000100,000110,000120,000
2007 2008 2009 2010 2011 2011* 2012*Gross domestic fixed investment
Million pesos 1993
Source: INDEC. * First half.
 Argentina WT/TPR/G/277 
 Page 9 
 
 
  (ii) Trends in foreign trade 
29. The policies adopted by the National Government  to improve competitiveness, together with 
an active trade promotion policy, resulted in more  intensive exporting, the diversification of the 
export basket and the opening up of new markets. 
30. Between 2007 and 2011 Argentina's foreign trade continued further along the path of growth 
on which it first set out in 2003:  exports grew at an  average annual rate of 14.1% and imports at an 
annual rate of 20.7% (in current dolla rs).  It is important to note that  both percentages were influenced 
by the sharp decline in global trade in 2009. 
31. In 2010 and 2011 exports grew at an annual rate of 22.8% and imports at 38.3%, evidence of 
the powerful integration of the Argentine economy in global trade. 
32. The strength of the country's export performance becomes clear when the trend in global trade 
is compared with that of Argentina:  wherea s during the period 2007-2011 global imports increased 
by 19%, Argentina's imports increased by 65.4%, three times the global growth rate.  Where exports 
are concerned, Argentina recorded an increase of  50% over the same period, much higher than the 
corresponding figure for global exports (18%). 
33. It should be noted that the sustained growth  in exports during the review period made it 
possible to generate a trade surplus, which was beneficial for the balance of payments and the 
sustainability of economic policy. 
34. In this connection, throughout the period begi nning in 2003 the trade balance was positive, 
even in the current global context.  Thus, in the first nine months of 2012 the trade surplus 
was US$10,942 million2, which means a year-on-year rise of 34%. 
35. In analysing the trends in trade it is important to consider, in particular, the performance of 
exports of manufactures of industrial origin (MIO ), which rose from 29% of total foreign sales 
between 1991 and 2002 to 35% between 2003 and 2011, despite the rising trend in agricultural products. 
36. This effect is a consequence of the 17% av erage annual increase in MIO exports since 2003, 
a rate considerably higher than that for Argen tine exports as a whole (14% per year on average). 
37. In addition, manufacturing exports increased their share of GDP, reaching 6.5% during the 
period 2003-2011, whereas in the 19 90s they accounted for only 2.2%. 
38. The trend described led to foreign sales of MIO rising by a total of 67% during the review 
period.  Thus, Argentina managed to avoid primariz ation, by raising the value added content of its 
exports. 
                                                      
2 Intercambio Comercial Argentino:  Datos provisorios del año 2011 y cifras estimadas de enero-
septiembre de 2012 .  Viewed at:  www.indec.gob.ar. WT/TPR/G/277 Trade Policy Review 
Page 10 
  
  55,98070,019
55,67268,18783,950
44,70757,462
38,78656,79373,937
63,57761,852
55,416
50,910
11,07212,55616,886
11,39510,0148,16110,942
010,00020,00030,00040,00050,00060,00070,00080,00090,000
2007 2008 2009 2010 2011 2011* 2012*Argentina's trade balance
Million pesos
Source: INDEC.Exports Imports Balance Exports Imports Balance
*  January-August.
 
 
22 231722 24 2634 34
3833343431 32343534 3312 11 12 10 8 8
020406080100
2007 2008 2009 2010 2011 2012*
FUEL & ENERGY MOA PP MOI
Source: INDEC. Argentina's exports by main groups
Per cent
* 8 months. 
 Argentina WT/TPR/G/277 
 Page 11 
 
 
  39. In this connection, it is appr opriate to stress not only the incr ease in exports but also their 
greater technological content:  the contribution of mi d- to high-tech products to total exports reached 
24% during the period 2007-2011, which is higher th an that recorded in earlier periods (20.7% 
for 1996-1998). 
40. Another distinctive aspect of this phase w as the increasing contribution of producers of 
capital goods and engineering products, as well as of chemical companies and manufacturers of vehicle parts, among others. 
41. For their part, MSME exports accounted for 15% of  total national exports.  It should be noted 
that this sector is being given priority  under the national development strategy. 
42. In the particular case of exports of Primary Products
3 (PP) and Manufactures of Agricultural 
Origin (MAO), an increasing trend was maintained  up to 2008, with sustained growth at rates 
of 11.25% in 2006, 33.89% in 2007 and 28.94% in 2008.  After a decline in 2009 due to the international economic crisis, these exports resume d their expansion, recording growth rates of 
23.26% in 2010 and 29.36% in 2011. 
43. Wheat, maize and soy complex are making a very  significant contribution as export products. 
44. As regards PP and MAO imports, they increased steadily between 2002 and 2008 (growth 
between end-points of 434%), only to decline mark edly in 2009 due to the international economic 
crisis.  They resumed their expansion in 2010 and 2011, albeit without achieving the level recorded 
in 2008. 
45. Prominent among imports are oilseeds and oleag inous fruit which, on average, accounted for 
20% of the sector total between 2006 and 2011.  These products are mainly imported for pressing, 
which indicates the importance of vegetable oil and "pellet" production within MAO. 
Foreign trade:  Argentina 2007-2011 
(US$ million) 
Exports f.o.b. 2007 2008 2009 2010 2011 Ch. Exports 2011-2007 
Primary products 12,486 16,202 9,257 15,148 20,213 61.9% 
Manufactures of Ag ricultural Origin 
(MOA) 19,213 23,906 21,225 22,668 28,192 46.7% 
Manufactures of Industrial Origin (MOI) 17,333 22,063 18,734 23,846 28,916 66.8% 
Fuel and energy 6,949 7,848 6,457 6,525 6,629 -4.6% 
Total 55,980 70,019 55,672 68,187 83,950 50.0% 
Imports c.i.f. 2007 2008 2009 2010 2011 Ch. Imports 2011-2007 
Primary products 1,804 3,137 1,245 1,663 2,270 25.9% 
Manufactures of Ag ricultural Origin 
(MOA) 1,065 1,303 1,065 1,478 1,805 69.5% 
Manufactures of Industrial Origin (MOI) 38,990 48,681 33,846 48,888 60,415 55.0% 
Fuel and energy 2,849 4,341 2,631 4,763 9,446 231.6% 
Total 44,707 57,462 38,786 56,793 73,937 65.4% 
Source:   National Directorate of National Accounts - INDEC. 
46. It is important to note that the coefficient of openness of the economy (understood as the ratio 
of foreign trade to GDP) has continued to increase in accordance with the trend observed over recent 
                                                      
3 Excluding those of mineral origin. WT/TPR/G/277 Trade Policy Review 
Page 12 
  
  decades, thanks to the greater relative growth of Arge ntina's trade.  In this case too there was a decline 
in 2009 and a subsequent recovery. 
Degree of openness of the economy
051015202530
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Per cent
Source: INDEC.M/PBI X/PBI Openness coefficient (X+M)/PBI(at 1993 prices)
 
 
47. The diversification of Argentina's trade is reflect ed in the relative shares of its main trading 
partners. 
48. MERCOSUR maintained its position as the princi pal export destination (24.7%), while the 
Asia-Pacific countries increased their share to 15.4%.  As a result of these changes, in 2011 
the two regions accounted for 40.1% of Argentine e xports as compared with 38.3% in 2007.  Exports 
to North America and the European Union accounted for 26% during the period 2007-2011. 
49. Where imports are concerned, thanks to gr owth and steady economic recovery Argentina 
made a relative contribution to global demand more  than proportional to its size, thereby promoting 
increased trade flows and global growth. 
50. Intra-regional trade played a significant role, as evidenced by the comb ined contribution of 
MERCOSUR and LAIA (34%) to total imports.  At th e same time, Asia-Pacific imports were those 
whose share showed the biggest incr ease, reaching 25% in 2011.  Fina lly, one third of total imports 
originated in the countries of North Am erica, the European Union and Africa. 
51. Trade in services increased in volume by about 45%. 
52. The services that grew the most were those related with information and information 
technology.  Business, professional and technical  services and construction services continued to 
show surpluses. Argentina WT/TPR/G/277 
 Page 13 
 
 
  53. Exports and imports of services for the year 2011 are broken down in the chart below. 
Exports and imports of services, 2011
Source: INDEC.Exports Imports
Transport
Travel
CommunicationsBusiness,
professional
& technicalOther 
services
RoyaltiesTransportPersonal,
cultural and
recreational
IT and
informationOther
services
Business,
professional
& technical
IT and
information
Insurance Travel
 
(iii) Trade promotion 
54. Another aspect of the National Government's st rategy to expand growth and employment and 
further improve external integration in the present environment of internati onal economic crisis has 
been its implementation of an ambitious and active trade promotion policy. 
55. The creation of the Foreign Trade Secretariat under the Ministry of the Economy and Public 
Finance and the coordination of its activities with th e initiatives of other ministries is a central feature 
of this policy. 
56. Within this context, Argentina is seeking to  increase and diversify Argentine exports with 
respect to not only destinations but also regions, products and enterprises.  Where destinations are 
concerned, the aim is to strengthen exports to tr aditional trading partners while helping to open up 
promising new growth markets.  In terms of produ cts, efforts are being made to diversify export 
supply, with emphasis on products w ith greater value-added at origin and local technology content in 
order to generate quality employment in Argentina. 
57. The MSMEs are a prime target for these measures,  in view of the special contribution they 
make to job creation and their greater n eed for assistance with the process of trade 
internationalization.  At the same time, Argentin a's trade promotion policy is also prioritizing the 
federalization of foreign trade, with the aim of  improving the geographical balance of the domestic 
production system by promoting sales from regional production complexes. WT/TPR/G/277 Trade Policy Review 
Page 14 
  
  58. These measures are being supplemented by con tinuous negotiations to improve access to 
markets for Argentine products, as well as by mu ltilateral questioning, through the World Trade 
Organization, of the new forms of protectionism evidenced by the increasing proliferation of non-tariff barriers. 
59. Trade promotion policy is being implemented by means of multisectoral and sectoral trade 
missions carried out abroad, the identification of marketing opportunities by Argentina's more than 140 representative offices around the world, visits  to Argentina by foreign importers (so-called 
"reverse missions"), and participation in internatio nal fairs and exhibitions.  Argentina's worldwide 
chain of representative offices are working to put these measures into effect, supply domestic 
businesses with market information and provide them  with assistance throughout the export process. 
60. At the same time, the work on trade promotion is being supplemented by the measures taken 
by the Argentine Export Foundation, a public-private trade promotion agency whose main task is to 
help businesses market their products and services compe titively at international level.  To this end, 
the Argentine Export Foundation facilitates contacts between Argentine producers and foreign buyers 
at the world's biggest business events and provi des domestic companies with trade information, 
technical assistance and training. 
(iv) Financial situation 
61. In the field of finance and foreign exchange, the year 2011 was marked by the repercussions 
of increasing global financial instability, especially during the second half of the year.  The Central 
Bank of the Argentine Republic (BCRA) played an active part in the market which enabled it to 
manage parities and smooth out movements in the no minal exchange rate in the face of the possible 
impact of shocks to the international financial system. 
62. In 2011, the BCRA's international reserves averaged US$50,410 million (US$38,500 million 
more than in 2003), providing ample room for manoeuvr e in dealing with exchange-rate pressures, as 
happened in connection with the outbr eak of the international crisis. 
63. In parallel with its intervention in the fore ign-exchange market, during the last months 
of 2011 the BCRA took a series of measures to stre ngthen its operational capabilities.  Moreover, 
in April 2012 the new Charter of the Central Bank,  approved by Law No. 26.739, entered into force. 
64. The reforms were mainly aimed at adapting th e Central Bank's regulatory framework to the 
new macroeconomic model in effect since the ab andonment of convertibility.  The Central Bank's 
new freedom of manoeuvre gave the monetary authority greater flexibility in dealing with the 
short-term needs of an economy exposed  to international economic volatility. 
65. The banking system continues to report excelle nt solvency and soundness indicators, as well 
as high rates of return.  At the same time, the "i rregularity" (non-performance) ratio for private sector 
financing remains at low levels in historical term s (1.7%).  Moreover, provisions as a percentage of 
the irregular portfolio stand at about 145%, which s hows that the system has a high level of coverage. 
66. Private-sector fixed-term deposits are increasing at record year-on-year rates of about 50%, 
exceeding last year's levels.  This high rate of  expansion shows that the economic and financial 
policies adopted have succeeded in establishi ng confidence in the local financial system. Argentina WT/TPR/G/277 
 Page 15 
 
 
  (v) Fiscal soundness 
67. The fiscal soundness of the economic model is  demonstrated by the primary surpluses 
obtained since 2003, something never before experien ced in Argentina's history.  This achievement 
can be attributed to several factors. 
68. Firstly, to the public debt reduction policy.  The economic growth experienced in the last 
nine years has made it possible to pursue a determin ed policy of national pub lic-sector debt reduction, 
leading to strong State finances and a soverei gn macroeconomic policy.  Whereas in 2002 gross 
national public-sector debt amounted to 166.4% of GDP, by the fourth  quarter of 2011 this figure had 
been reduced to 41.8%.  Moreover,  53.8% of this total is in the hands of public-sector agencies 
and 13.9% is held by multilateral and bilateral credit organizations.  Thus, only 32.3% of public debt, 
amounting to a mere 13.5% of GDP, is in private hands. 
69. Secondly, to more efficient tax administration and a lesser tendency to evade and avoid taxes.  
This is being supplemented by a process of increasing  the impact of progressive taxes such as export 
duties and income/profits tax ( impuesto a las ganancias ), signifying progress towards a fairer tax 
structure. 
70. Thirdly, to an expansion of public expenditure , which maintained a balance between the need 
to restore coverage of the country's social and physical infrastructure and the goal of achieving a 
budgetary outcome that would provide the capacity to carry out various public policies if the circumstances so required. 
71. The debt reduction and the absence of budgetary imbalances has made it possible to use fiscal 
policy tools to restore the economic infrastructure, ta ke care of the needs of the less privileged social 
groups and promote greater regional equity.  These me asures include, in particular, the creation of the 
Federal Solidarity Fund to finance works aimed at improving the health, education, hospital, housing 
or road infrastructure in urban or rura l areas in the provinces and municipalities. 
72. Thus, throughout the review period tax receip ts reflected recovery in the level of 
activity. During the period 2007-2011 the cumulative increase was 170%.  In the first nine months 
of 2012, receipts grew by 25% as compared wi th the same period during the previous year, 
reaching Arg$496,783 million. 
73. On the expenditure side, between 2007 and 201 1 primary expenditure expanded by 218%.  
In January-August 2012 an increase of 32% was record ed as compared with the same period in the 
previous year.  Thus, throughout the period 2007-2011 buoyant tax receipts made it possible to record 
primary surpluses, which in the first eight months of 2012 amounted to Arg$6,200 million. 
(vi) Employment and social policy 
74. The accelerated rate of growth was also reflected  in the main labour market indicators, which 
followed a favourable trend despite the resurgence of the global crisis.  Activity and employment rates 
continued to rise and unemployment fell to 6.7% in the fourth quarter of 2011.  Moreover, formal 
employment continued to gain ground:  the non-registration rate fell 0.9 percentage points 
between 2010 and 2011. 
 WT/TPR/G/277 Trade Policy Review 
Page 16 
  
  6,187 6,372 
5,567 5,966 
2,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,000
2007 2008 2009 2010 2011  1st qu. 2011  1st qu. 2012Registered private employment
Thousands of jobs
Source: Ministry of Labour, Employment and Social Security.   
75. After several years of steady growth and recovery in employment and in the production 
sector, from 2006 the social protection system became the target for important reforms, such as the 
Social Security System Inclusion Programme and the Universal Child Allowance (AUH) and 
Pregnancy Allowance for Social Protection, which su cceeded in putting the rights  of more vulnerable 
groups - the elderly and children - on an equal footi ng regardless of the characteristics of their entry 
into the labour market. 
76. Moreover, within the context of the global crisis, the policies to reduce the risk of 
unemployment have been extended.  The Productio n Recovery Programme (REPRO), a key tool for 
preventing job destruction during the crisis of 2009, has been extended up to 31 December 2012. 
77. The reduction in employer's contributions for new workers (Law No. 26.476), a policy that 
proved effective in creating new jobs following the last  international crisis, has also been extended.  
In this way, the total wage bill has been mainta ined and the activity and employment rates stabilized 
at 45.5% and 42.3%, respectively. 
78. With respect to income policy, the revival and periodic updating as from 2003 of two such 
fundamental institutions as the Sliding Minimum Living Wage (SMVM) and peer negotiations by 
branch of economic activity continue d to boost workers' spending power. 
79. The SMVM was recently set at Arg$2,875, a figure to be reached in two steps:  
September 2012 and February 2013.  By the la tter month, the SMVM will have increased 
by 1,337.5% as compared with February 2003.  Collec tive bargaining remained at high levels in 2011, 
with 1,864 approved agreements and contracts. 
80. Where the incomes of the non-working population are concerned, pensions increased by 37% 
in 2011 and the minimum pension, which st ood at Arg$150 in 2003, reached Arg$1,924 in 
September 2012, the equivalent of a 1,183.7% in crease.  These increases are important not only 
because of their size but also because of the ex tent of their coverage among the elderly. Argentina WT/TPR/G/277 
 Page 17 
 
 
  81. According to the 2010 census, starting with the Social Security System Inclusion Programme, 
coverage increased by more than 20  percentage points in the last te n years and now takes in 95.1% of 
elderly adults. 
82. Finally, the current strength and favourable e volution of the labour market in Argentina, 
together with the income-boosting measures adopted  by the National Government, have made it 
possible to continue improving income distribution. 
83. In the second quarter of 2004 the income gap, calculated as the ratio of the share of income 
going to the richest 10% of the population to the share going to the poorest 10%, was 60.3;  by the second quarter of 2012 it had falle n to 18.2.  Likewise, in the second quarter of 2012 income 
distribution was the fairest for the last 18 years, with a Gini coefficient of 0.418. 
(4) S
ECTORAL PERFORMANCE  
(i) Agricultural sector 
84. The agricultural sector played a decisive role in  consolidating the economic and social growth 
that began in 2003, thanks to a virtuous loop between domestic policies clearly aimed at promoting 
development and an international environm ent that favoured agricultural products. 
85. In the review period, the Government focused its efforts on increasing agricultural production 
and productivity while achieving greater social inclusion, with the emphasis on increasing 
value-added at origin, strengthening the regional economies and promoting the development of small 
producers. 
86. The active participation of the State had a favourable impact on sectoral development in 
several ways.  On the one hand, the establishmen t of consistent macroec onomic policies facilitated 
planning by the producers.  Secondly, the recove ry of the domestic market was consolidated as a 
result of strong economic growth, which improved national food security.  Thirdly, incentives for 
productive investment continued to be provided in order to meet the growing demand for food, both 
domestic and international, and en courage rural industrialization. 
87. Another feature was the promotion of interna tional trade negotiations and the establishment 
of high health and technical standards which made possible the entry of more products for more uses 
and with greater value-added at origin. 
88. It should be noted that in 2011, agricultural GDP was 28% higher than in 2004, with stable 
and sustainable growth during the intervening years. 
89. Where agricultural biotechnology is concerne d, between 2006 and 2011 Argentina authorized 
the marketing of 12 biotech soya and maize crops.  These crops have a better yield and/or reduce 
production costs, as the case may be, and ultimately a ll contribute to a more competitive range of 
Argentine agricultural products for export, a ra nge within which products derived from soya and 
maize predominate. 
90. Moreover, the use of these crops is helping to make production more sustainable since, 
compared with conventional crops, there is a reduced  need for pesticides and preference is given to 
management models that better preserve soil resources. WT/TPR/G/277 Trade Policy Review 
Page 18 
  
  91. The sustained growth of the agricultural sector is  reflected not only in primary products but 
also in manufactures of agricultural origin (MAO).  In recent years, the food and beverage (F&B) 
industry has steadily expanded.  Between 2006 and 2011 the sector grew by 42%, with a gross value-added at 1993 prices that rose fro m Arg$13,124 million to Arg$18,689 million. 
 
7.2%
4.4% 4.5%8.2%
0.6%4.7%
0%1%2%3%4%5%6%7%8%9%
2006 2007 2008 2009 2010 2011Trend in the level of food and beverage industry activity
Source: INDEC.   
92. Growth in some sectors considerably exceeded  the general level, for example, beer and 
malted beverages (93%);  sodas, wa ter and fruit juice (91%);  poultry meat (87%);  spirits (63%);  
biscuits and rusks (60%);  confectionery and baker' s wares (54%);  tea and mate (47%);  and cold 
meats and sausages (44%). 
93. Between 2006 and 2011, food and bevera ge exports rose from US$14,299 million 
to US$26,471 million, an 85% increase.  This expansion of the sector was also reflected 
in MAO exports, which reached US$28,192 million in  2011 (85% more than in 2006) and accounted 
for 34% of total exports. Argentina WT/TPR/G/277 
 Page 19 
 
 
  11%16%18%28%30%31%37%41%42.40%44%47%54%60%63%87%91%93%
0% 20% 40% 60% 80% 100%Beef, lamb, pork, hare and other meatWine, cider and other alcoholic beveragesDairy productsWheat millingFruit, vegetables and garden produceSugarAerated beveragesVegetable oils and fatsTOTAL FOOD & BEVERAGESCold meats and sausagesTea and mateBaker's wares, chocolate, pasta, coffee and spicesBiscuits & rusksSpiritsPoultry meatSoda, water, fruit juiceBeer and malted beverages
Source: INDEC.Trend in value-added, by sector 2006-2011
 
94. It is particularly worth noting the improvement in the competitiveness of the poultry meat 
sector, which grew its production from 1.2 to 1.8 million tonnes between 2006 and 2011, an increase of 53%.  This increase had an impact on the domes tic as well as the external market.  On the 
one hand, the local market absorbed a substantia l share, with consumption rising from 27.8 kg per 
head per year to 38.6 kg per head per year (an in crease of 39%).  On the other hand, total exports 
(meat and byproducts) increased by 106% in volume (292,000 tonnes in 2011) and by 229% in value (US$459 million f.o.b. in 2011). 
95. From the institutional standpoint, the agricultural portfolio was given ministerial status with 
the creation of the Ministry of Agri culture, Livestock and Fisheries (MAGyP)
4 in 2010, which made it 
possible for agricultural issues to be dea lt with at the highest political level. 
96. Three Secretariats were established under th e MAGyP:  (i) Agriculture, Livestock and 
Fisheries, (ii) Policy-Institutional Coordination and Agricultural Emergencies, and (iii) Rural 
Development and Family Agriculture.  Within this process, the creation of the Undersecretariat for 
Value Added and New Technologies, with the aim of promoting the incorporation of value into the 
export range and thereby generating new jobs and promoting rural industrialization, deserves special 
attention. 
97. The process of strengthening and professionalizing the decentralized agencies reporting to the 
MAGyP has also continued.  These include (i) SENASA, the agency charged with implementing 
national animal and plant health and quality polic ies and verifying compliance with the relevant 
regulations;  (ii) INTA, the agency responsible for the design and implementation of research and 
technological innovation measures in the value ch ains, regions and territories for the purpose of 
improving competitiveness and sustainable rural deve lopment;  (iii) INIDEP, the agency charged with 
providing technical information on the rational use of  sustainable resources for the primary purpose of 
                                                      
4 Raising the status of the former Secretariat for Agriculture, Livestock, Fisheries and Food. WT/TPR/G/277 Trade Policy Review 
Page 20 
  
  preserving the marine ecosystem;  (iv) INV, the ag ency competent for the development and inspection 
of the wine-making sector;  and (v) INASE, the agen cy entrusted with promoting the transparency of 
the seed markets and stimulating the development of the seed sector. 
98. Within this public policy framework the St rategic Agri-Food and Agro-Industrial Plan 
for 2010-2020 (PEA) was launched.  This plan is ai med at achieving sustainable growth in agri-food 
and agro-industrial production for the purpose of gene rating greater wealth with value-added at origin 
and benefits for the entire population in the form of development, social justice, regional equity, land 
tenure, and food and nutritional security. 
99. The plan is the result of coordination be tween representatives of the 23 provinces, 
53 faculties, 140 business chambers, 300 representatives of the economic and social sector, 
international organizations (ECLAC, FAO, IIC A and UNDP), 450 rural women, 340 young family 
farmers, 450 agricultural technology schools and more  than 1,150 people conn ected with the sector 
from all over the country. 
100. Investment, both public and foreign direct, h as also increased strongl y in the agricultural 
sector due to the restoration of the State's role  in ordering the economy, the increase in domestic 
demand through wage recovery, and the recovery in international prices. 
101. In this connection, the MAGyP is implemen ting a series of agricultural financing and 
promotion programmes through its Rural Change Un it (UCAR), the main one being the Provincial 
Agricultural Services Programme (PROSAP).  PR OSAP is preparing and implementing productive 
infrastructure projects (irrigation and drainage, el ectrification and rural roads, agricultural and 
agri-food health and quality, forest development, and technical assistance and training), as well as 
projects for promoting private investment in produc tion chains and financing of cluster development 
initiatives, regional development a nd technical innovation transfer. 
(ii) Manufacturing sector 
102. Industrial development is one of the pillars  of the political and economic model first 
introduced in 2003.  It is understood that sustai ned industrial growth is a necessary condition for 
achieving the National Government's objective of deve lopment with social inclusion.  Within this 
context, in the last nine years Argentina's industr y has experienced the greatest growth cycle in its 
history, in terms of both duration and intensity. 
103. Manufacturing GDP grew at an average annual ra te of 8.4%, a figure which exceeds the high 
rate of growth of Argentina's real GDP over th e period 2003-2011 (7.7%).  The manufacturing sector 
recorded high growth rates in every year except 2009, the only year in which industrial GDP turned 
negative (-0.5%), reflecting the impact of the inte rnational crisis.  Even so, industrial activity 
recovered rapidly, growing by 9.8% in 2010 and 11% in 2011, to set new records for production, 
investment and exports. 
104. Thus, industry has reassumed its role as the engine of growth.  In fact, it was the sector that 
contributed most to the expansion of GDP, accounti ng for 17.3% of the increase in product recorded 
between 2003 and 2012. 
105. Moreover, during the period 200 6-2011, real industrial GDP increased by 36% (6% average 
annual growth), with a degree of installed capac ity utilization that averaged 78.7% in 2011, 
five points higher than the average level recorded in 2006 (73.7%). Argentina WT/TPR/G/277 
 Page 21 
 
 
  -4%10%12%
5% 4%
-7%6%9%
2%
-8%-4%
-7%
-11%16%
12%
7%9%
8%
5%
-1%10%11%
-15-10-505101520
1990
199119921993199419951996199719981999200020012002200320042005200620072008200920102011Source: INDEC. Industrial GDP
(At constant prices, million 1993)
Change (%)
 
106. As distinct from other periods of manufactur ing expansion centred on the growth of a few 
sectors, since 2003 the majority of branches of i ndustry have performed strongly, achieving balanced 
growth which not only met expa nding domestic demand but also succeeded in supplying foreign 
markets through increased exports. 
-13%5%9%14%14%18%19%23%24%25%27%29%56%
-20% -10% 0% 10% 20% 30% 40% 50% 60%Oil refiningTobacco productsPaper & paperboardTextilesBasic metalsPublishing & printingFood and beveragesOverall levelChemicalsRubber & plasticsMetalworking, excl. automotiveNon-metallic mineralsMotor vehicles
Source: Monthl y Industrial Activit y Estimator (EMI ) -I N D E C .Manufacturing industry
(Change % 2007-2011)
 
107. Undoubtedly, one of the most notable structural changes brought about since 2003 is the 
recovery in industrial density, thanks to which the productive framework has been strengthened both 
by the generalized growth of all the manufacturing sectors and by the net creation of businesses and the growth of MSMEs. WT/TPR/G/277 Trade Policy Review 
Page 22 
  
  108. Through its impact on job creation and income distribution, the development of MSMEs is a 
key factor in the process of growth with social in clusion.  In fact, the MSMEs are one of the main 
concerns of the Ministry of Industry, which offers  financing, training, support for entrepreneurship 
and assistance with the process of in ternationalization of production. 
109. Thus, since 2003, more than 19,000 small and me dium-sized industrial enterprises have been 
created and account for a significant proportion of the million jobs generated in industry. 
110. Job creation has been accompanied by an increase in labour productivity.  Productivity in the 
manufacturing sector grew at an annual rate of 6.4% in the period 2006-2011.  The increase in 
productivity was particularly rapid in the leat her and footwear sector (94%), in the food 
industry (56%) and in motor vehicle production (40%). 
-0.8%4.2%4.4%5.0%6.2%8.9%9.5%13.6%42.40%15.5%15.8%16.5%17.2%20.8%21.8%39.8%
-5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%TextilesFood & beveragesOil refining, and otherEngines, equipmentBasic  metalsOverall levelPaper & metal productsFabricated metal productsFurniture & manuf. industriesMachinery & equipmentNon-metallic mineral productsRubber & plastic productsTransport equipmentChemicalsCommunications equip. & apparatusMotor vehicles and parts
Source: INDEC.Employment Growth Index (EGI) for the manufacturing industry
(Change % 2011 vs. 2006) 
 
111. The growth of the industry was strongly reflected  in the external sector.  Both exports and 
imports of manufactured products increased rapidly during the review period and the value traded 
almost doubled between 2006 and 2011.  Thus, while  imports grew by 99.4%, exports grew by 89.7% 
in the same period. 
112. Where manufactures of industrial origin (MIO) are concerned, in 2011 exports reached an 
all-time maximum of US$28,916 million, having increased at an annual rate of 14.3% between 2006 
and 2011.  The main exports were land transport vehicles and chemical and related products, which 
accounted for 35% and 20% of total MIO exports, respectively. 
113. Imports totalled US$60,415 million in 2011, almost double the figure for 2006 
(US$30,394 million), having expanded at an annual rate of 14.7%. 
114. The Ministry of Industry, created during the review period, is responsible for designing and 
implementing national industrial policy, with the aim of achieving sustainable industrial development Argentina WT/TPR/G/277 
 Page 23 
 
 
  that ensures growth with social inclusion and has a positive impact on income distribution.  The work 
of the Ministry of Industry is mainly orga nized through three Secr etariats corresponding 
to three strategic areas. 
115. The mission of the Secretariat for Industry is to intervene in the definition of industrial policy 
and the design, financing and utilization of the tool s needed to promote the development of industry, 
as well to define policies for the promotion of i nvestment and financing facilities for the industrial 
sector. 
116. The Secretariat for Strategic Industrial Planni ng concerns itself with planning medium and 
long-term industrial policies and with implementi ng regional, sectoral and value chain policies to 
improve competitiveness and the degree of value-added. 
117. The Secretariat for Small and Medium-Sized Enterprises and Regional Development 
(SEPYME) determines the strategic outlines of polic ies concerning micro, small and medium-sized 
enterprises (MSMEs) and coordinates specifi c policies in support of the commercial 
internationalization of MSMEs. 
118. A fourth entity assigned to the Ministry of In dustry, the National Institute of Industrial 
Technology (INTI), has the task of facilitating th e incorporation of technology and innovation into 
MSME production processes.5 
119. With a view to expanding and consolidating th e process of re-industrialization begun in 2003, 
the Ministry of Industry has launched the Strategi c Plan for Industry 2020 (PEI 2020).  The PEI 2020, 
in which workers, employers, universities and representatives of the public and private sectors 
participate, lays down overall objectives for Argentin e industry, with annual growth of 5% of GDP 
and 7% of industrial GDP as targets. 
120. The targets for 2020 are to achieve US$167,000 million in exports and US$139,000 million in 
imports, reduce the unemployment rate to 5%, with the creation of 1,500,000 jobs, and arrive at a 
level of investment of 28% of GDP.  Thus, the Ministry of Industry has objectives validated by 2,500 participants from 11 industrial value chains. 
121. In 2011, the development of Plan 2020 led to nine agreements that lay out the path for 
intensifying the re-industrialization process and enab ling Argentina to achieve full development.  
Thus, each sector has its own particular space with in which to deal with issues relating to the 
improvement of every link in its production chain, in every region of the country, so as to convert to 
industrial development and the strategies for ach ieving it, within a national policy framework. 
III. FOREIGN TRADE POLICY 
(1) A
RGENTINA AND THE G-20 
122. Argentina participates actively in the G-20, a fo rum which since the crisis of 2008 has seen its 
status raised with the participation of Leader s and Heads of Government and has become the 
main group for global economic coordi nation.  Thanks to its informal  nature and spirit of cooperation 
it has been able to formulate policy agreements to confront the most acute phase of the current 
international crisis. 
                                                      
5 Online information from the Ministry of Indus try.  Viewed at:  http ://www.industria.gob.ar/? 
page_id=12579. WT/TPR/G/277 Trade Policy Review 
Page 24 
  
  123. The Group has gone on to support the priorities of growth stimulation and job creation 
established by the forum in 2012, two compleme ntary preconditions for world economic recovery 
which must be addressed in a cons istent and coordi nated fashion. 
124. The National Government is convinced that the stimulation of aggregate demand is a 
necessary strategy for returning to the path of gr owth, a strategy which must be coordinated with 
policies for creating and promoting decent employment that favour social inclusion. 
125. In addition, Argentina is a member of the G-20's emerging country group, whose vigorous 
growth has contributed both to global economic recovery and to the bolstering of aggregate demand and international trade. 
126. Both the G-20 and other international organiza tions have recognized the efforts made by the 
emerging and developing economies, despite the fact that their growth trajectories have begun to be 
affected by the internal imbalances of the advanced economies and their slow recovery. 
127. Argentina considers that the G-20's initiatives should neither duplicate nor replace the work 
being done in other international forums dedicat ed to specific issues such as, for example, 
the UNFCCC, where climate change is concerned. 
128. With regard to trade, it has stressed the importance of concluding the Doha Development 
Round, with balanced results and pursuant to its original mandate and the single undertaking 
principle.  In this connection, it has urged the inclusion in the G-20 Leaders' Declarations of a 
commitment to conclude the Round, inasmuch as th e current status of the negotiations is weakening 
the international trading system. 
129. In addition, at the meeting of the G-20 Ministers of Trade held during Mexico's temporary 
presidency, Argentina co-sponsored the presentation of the declaration of the BRICS group countries, thereby demonstrating its sympathy with the positions on trade taken in that document. 
130. In the trade pillar of the Development Working Group, which is centred on the needs of the 
least developed countries (LDCs) from a developmen t perspective and in the coordination of which 
Argentina participates, it has been striving to adva nce the initiatives previously  agreed in the G-20.  
Several of these are related with the implem entation of the commitments undertaken at 
the 2005 Hong Kong Ministerial Conference, such as duty-free and quota-free (DFQF) market access 
for these countries. 
131. Argentina has also undertaken to provide LDCs  with aid for trade through various initiatives 
on the African continent.  These include the proj ect on transparency and trade facilitation in 
Sub-Saharan Africa, supported by the African De velopment Bank (AfDB) and the World Bank, the 
financing of trade with the participation of  the AfDB, and regional integration through the 
development of integration corridors and inte rregional routes with the aim of improving the 
infrastructure, particularly the roads, in  order to develop intra-regional trade. 
132. Finally, in the debate on food security in the G- 20, it is Argentina's position that poverty is the 
main cause of this scourge that affects 870 million peopl e.  In order to confront this situation in an 
integrated fashion and thus make a substantial contribution to solving the problems of food insecurity, 
it is advocating the conclusion of the Doha Round in  conformity with its agricultural mandate, the 
improvement of agricultural productivity in low- income countries, and better regulation of the 
financial commodity markets in this sector. Argentina WT/TPR/G/277 
 Page 25 
 
 
  (2) ARGENTINA AND THE WTO 
133. With a view to helping to reduce the developm ent gap by promoting inclusive, sustainable 
and balanced growth, Argentina is playing an act ive part within the framework of the regular 
activities of the WTO, as well as in the Doha Development Round negotiations. 
134. Argentina has pointed out that the rules which currently govern international trade are biased 
against the needs of the developing countries.  Th e profound imbalance which has characterized the 
trade rules since the creation of the GATT restrict s the opportunities for industrialization and for 
adding value to primary production in the countries in question. 
135. Within this context, the central objective of the trade negotiations cannot be other than to 
work towards a more open, non-discriminatory model of the multilateral trading system, basically in 
the agricultural sector, that gives pr iority to the needs and interests of the developing countries, as 
established by the 2001 Doha Negotiating Mandate. 
(i) Regular committees 
136. Argentina participates actively in the regular  activities of the WTO's various Committees and 
Councils, complying fully with its commitments to the Organization. 
137. Where notifications and contributions to the transparency of the multilateral trading system 
are concerned, Argentina has regularly submitte d new and full annual notifications under the 
Agreement on Subsidies and Countervailing Measures,  notifications on import licensing procedures 
and the annual questionnaires on those procedures, draft sanitary and phytosanitary measures, and notifications of anti-dumping actions.  Moreover, it has responded to all the enquiries made by other 
Members within the framework of  the respective Committees, as well as within the context of the 
General Council and the Council for Trade in Goods. 
138. Aware that the proliferation of barriers to trad e, particularly on the part of the developed 
countries, has become a distorting factor that is jeopardizing the normal flow of trade, Argentina has held consultations on various restrictive measur es applied by these countries within the context of 
meetings of the Committee on Technical Barriers to Trade.  Moreover, it has given timely notification 
of all the trade-related technical regulati ons introduced during the review period. 
139. At the same time, it has submitted numerous proposals to the Committee on Sanitary and 
Phytosanitary Measures.  Specifically, during the review period it proposed action to improve the application of various provisions of  the Agreement (including in relation to Articles 12.2, 8 and 12.4), 
and raised specific trade concerns with a view to ensuring that Members comply strictly with their 
obligations under the Agreement and that Argentine exports are not adversely affected by measures of 
a protectionist nature. 
140. It should be noted that Argentina particip ates actively in the three international 
standardization organizations mentioned in the SPS Agreement, namely, the Codex Alimentarius 
Commission, the World Organisation for Animal Hea lth (OIE) and the International Plant Protection 
Convention (IPPC). WT/TPR/G/277 Trade Policy Review 
Page 26 
  
  141. It is important that attention be drawn to some  of the concerns raised by Argentina at the 
regular meeting of the Committee on Agricultu re held in November 2011, relating to: 
a. The paralysis of the Agricultural Reform proces s, incomplete as a result of the impasse in the 
Doha Round negotiations on agriculture. 
 
b. The impairment of the provisions of Article  4.2 of the Agreement on Agriculture concerning 
the elimination of non-tariff restrictions on impor ts.  Argentina considers that the Agreement 
on Agriculture recognizes the very close linkage  between trade liberalization goals in the 
sector and the proper applicati on of other types of measures (sanitary and technical) whose 
impact in terms of market access can be just as if not more decisive than tariffs, domestic 
support or export subsidies.  In view of th ese circumstances, Arge ntina has expressed its 
concern about the growing unjustified proliferati on of measures of this kind, which seriously 
undermine the export potential of many countries. 
 142. At the June 2012 meeting, Argentina submitted a compilation of academic studies concerning 
the commercial quantification of trade losses which re veals both the existence of the problem and its 
capacity for impairing the modest access to the agricultural market obtained in the Uruguay Round.
6 
143. Argentina warned of this situation at the Eighth Ministerial Conference, when it stated 
that "As regards agriculture, the bastion of protecti onism, the situation is very serious.  It is not 
just the fact that the process of reform in agriculture has stopped, despite what was agreed in the 
Uruguay Round, but also the fact that the mod est market access obtained then is being eroded 
by the growing use of technical barriers incompat ible with the WTO rules.  This protectionism 
takes on various forms, including arbitrary private standards or unjustified barriers to 
technological innovation".7 
144. During the review period, Argentina particip ated in the accession processes of several 
countries, given the framework of predictability that  the rules of the WTO provide for trade relations, 
and in particular in the accession working parties fo r Cape Verde, Tonga, Ukraine, Vanuatu and the 
Russian Federation, which ended successfully with th e entry of these countries into the Organization. 
145. Argentina is an active member of the Trade Policy Review Mechanism, which it considers 
essential for the transparency and pr edictability of the multilateral trading system.  Accordingly, it has 
participated in more than 30 trade policy reviews of other WTO Members. 
146. In view of the importance of the notifications  made by Members, the developed countries are 
urged to provide up-to-date information concerni ng tariffs and trade volume, domestic support 
measures applied to agricultural pr oducts, and support measures for industrial sectors affected by the 
international crisis that began in 2008, so that all Members of the Organization contribute to the 
transparency of the multilateral trading system. 
(ii) Dispute settlement 
147. During the review period, Argentina partic ipated in a total of 27 disputes, acting 
in four disputes as the complainant, in five as th e defendant and in 18 as a third party, complying in 
all cases with the recommendations of the Di spute Settlement Body.  Thus, Argentina 
                                                      
6 66th Regular Session of the Committee on Agriculture. 
7 WT/MIN(11)/ST/19. Argentina WT/TPR/G/277 
 Page 27 
 
 
  ranks 11th among the countries to have made most u se of this mechanism since the creation of 
the WTO, having participated in a total of 83 cases since 1995, mostly as a third party. 
148. The WTO's dispute settlement mechanism is an essential factor in ensuring that Members 
comply with WTO rules.  It is therefore necessary to strengthen the particip ation of the developing 
countries which, because of their relatively less pow erful position within the global economic system, 
find their opportunities for involvement limited.  Technical assistance could facilitate this process. 
(iii) The Doha Development Round 
149. Argentina has actively participated in the Doha  Round negotiations and continues to be fully 
committed to the conclusion of the negotiations wi th a view to balancing and strengthening the 
multilateral trading system. 
150. The paralysis of the negotiating process is a constant  concern.  It is important to point out that 
the alternative approaches envisaged  as a means of escaping from this situation must conform to the 
Doha mandate and the "single undertaking" principle in  order to ensure a balanced result.  It should 
also be stressed that plurilateral approaches go against the principles of inclusiveness and 
multilateralism and are therefore unacceptable.  Th is position was incorporated in the Ministerial 
Declaration of the "Friends of Development", si gned on the occasion of the WTO's Eighth Ministerial 
Conference in Geneva in December 2011. 
151. Agriculture should be central to the negotiations  because of its contribution to development, 
as recognized in the Doha Declaration.  It is n ecessary to eliminate the discriminatory, distortive and 
protectionist policies that are affecting this sector  and restricting the opportunities for industrialization 
and for adding value to primary production in th e LDCs, thereby holding back their development 
process. 
152. In fact it is the traditional distortive measures (high tariffs, tariff escalation, quotas, export 
subsidies), adopted mainly in the developed countri es, that are the ones really responsible for the 
problems of international trade.  The imba lance caused by the accumulation of traditional 
protectionist measures is now being aggravated by  the proliferation of scientifically unjustified 
sanitary, phytosanitary and technical barriers. 
153. Argentina has warned about the increasing prolif eration of measures of this kind, which are 
seriously affecting the export potential of numerous developing countries.  Lack of scientific evidence 
tends to be the main cause for complaints against import restrictions such as unjustified delays, deviation from international standards, discre tionary labelling systems, and/or discriminatory 
treatment of new technologies such as biotechnology. 
154. These restrictions are affecting the developmen t of many countries that export agricultural 
products, mainly the small producers which find it vi rtually impossible to adapt to the unjustified 
requirements of many markets.  All this is discouraging production and innovation in the food 
markets and compromising global food security. 
155. In these circumstances Argentin a believes that the Doha Roun d negotiations should prioritize 
the achievement of an ambitious result in Agricu lture, with special emphasis on obtaining effective 
improvements in the competitiveness of those countri es with a greater potential for developing this 
activity.  To achieve an open trading system that stimulates the expansion of production it will be 
necessary to concentrate on fulfilling the Doha  agricultural negotiating mandate, an essential 
precondition not only of many countries' devel opment but also for achieving food security. WT/TPR/G/277 Trade Policy Review 
Page 28 
  
  156. Likewise, Argentina attaches vital importan ce to the negotiations on market access for 
non-agricultural products (NAMA).  A limit on possible undertakings in this respect is laid down in 
paragraph 24 of the Hong Kong Ministerial Declar ation, which establishes th e need for a balanced 
level of ambition in the negotiations on market access for Ag riculture and NAMA. 
157. In this context, Argentina considers it fundament al for the developing countries to be able to 
preserve their own space for the implementation of policies aimed at maintaining levels of 
employment and social stability, objectives of sel f-evident importance in the current economic and 
financial crisis. 
158. At the same time, the principles of less than full reciprocity and special and more favourable 
treatment for the developing countries, in the fo rm of lower tariff reductions and flexibilities in 
exempting products from reduction commitments, are regarded as essential pillars of an ethical 
negotiating process. 
159. In the area of services, Argentina made an im portant contribution to their liberalization during 
the Uruguay Round.  Any progress made in this area mu st be transparent, inclusive and faithful to the 
Doha mandate, and include equivalent treatme nt for industrial and agricultural services. 
160. With respect to the other negotiating areas, speci al importance is attached to the elimination 
of fisheries subsidies, an issue which, in additi on to its commercial importance, is of fundamental 
significance for the environment and food security. 
(iv) Surveillance and transparency 
161. Argentina has been constructively collaborating in  the preparation of the reports on the trade 
measures applied by WTO Members which, since 2009,  have been drawn up by the Director-General, 
given the importance of this monitoring exercise ag reed in the wake of the international economic 
crisis. 
162. However, it should be pointed out that these reports have shortcom ings which could be 
remedied by taking into account the proposals ma de by Members for their improvement, including 
those made on various occasions by Argentina.  In this connection, the following concerns have been 
expressed: 
a. In the reports up to 2012, only measures a pplied since 2008 were taken into account, without 
considering measures implemented in previous years whose distorting effects on world trade are still apparent and still disturbi ng the normal terms of competition. 
 
b. The reports stress certain trade measures which they describe as "restrictive" when, in reality, 
they constitute legitimate tools of trade polic y compatible with WTO provisions, imposed in 
some cases for the purpose of correcting practices that distort international trade, such as 
anti-dumping measures, countervailing measur es, import licences or specific customs 
procedures.  On the other hand, the reports do not include the economic stimulus packages 
applied by the developed countries, which do disturb the normal business of trade and have 
not been notified to any of the WTO's regular committees.  This clearly reflects a lack of 
balance in the reports. 
 c. Some of the measures included in the reports  have as their only source certain information 
published in the press or on websites which in  some cases does not match up with any 
existing law or regulation.  Moreover, the info rmation published only concerns measures with Argentina WT/TPR/G/277 
 Page 29 
 
 
  little impact on trade, generally imposed by  developing countries, without mentioning 
measures that heavily distort international tr ade, such as the bailout measures and fiscal 
stimulus packages which the developed countries have adopted for the benefit of banks and 
businesses.  A request has therefore been made for the reports to contain only information 
coming from official government sources. 
 163. These concerns have been partially taken up in th e latest reports for 2012;  nevertheless, there 
is still much that could be improved.  Argentina ho pes that the incorporation of these suggestions in 
future reports will result in a higher degree of objectivity and transparency. 
(3) A
RGENTINA AND REGIONAL INTEGRATION  
(i) Argentina and MERCOSUR 
164. Argentina regards the Southern Common Market  (MERCOSUR) as a central strategic project 
in its foreign policy and an important platform for promoting its further international integration.  
Since the signing of the Treaty establishing MERCOSUR (1991 Treaty of Asunción), this regional integration agreement has become the priority regi onal integration objective of Argentina's foreign 
trade policy.  At the same time, MERCOSUR cons titutes a key instrument for improving conditions 
of access for Argentine exports to other markets within and outside the region. 
165. Argentina is playing an active role in the process of building MERCOSUR and its 
participation in this regional inte gration project means that some of its trade policy decisions are 
defined at MERCOSUR level.  Specifically, trade i ssues concerned with Argentina's relations with 
other, non-MERCOSUR, countries are covered by  commitments undertaken at regional level. 
166. In the more than 20 years since its formal creation, MERCOSUR has made substantial 
progress towards achieving its objective of estab lishing a common market, which requires the 
consolidation of a customs union.  The advances made include the effective application of the 
Common External Tariff (CET) in most areas of trade w ith the rest of the world, with a reduction in 
the number of products included in the national lis ts of exceptions and the harmonization of various 
trade policy instruments. 
167. In 2010, in connection with the free movement of goods within the customs union and with a 
view to the future elimination of double charging of  the common external tariff and the distribution of 
customs revenue
8, a substantial advance was made with the approval of the MERCOSUR Customs 
Code (MCC) by Decision CMC No. 27/10. 
168. Once it has been approved by the parliaments of the four States Parties, this "Framework 
Code" will make it possible to adopt common customs legislation, which will result in benefits for 
numerous economic agents and unify the procedures applied by the customs administrations of the 
States Parties. 
169. As regards the interconnection of electr onic customs systems, the Customs Records 
Information Exchange System (INDIRA) has been  developed to centraliz e consultation of the 
customs systems currently in operation in each State Party (Argentina-Maria, Brazil Siscomex, 
                                                      
8 Decision CMC No. 10/10 laid down guidelines for the full implementation of the elimination of 
double charging of the CET, the distribution of customs revenue and the online interconnection of electronic 
customs management systems.  The corresponding regulations are being examined within the Common Market 
Group. WT/TPR/G/277 Trade Policy Review 
Page 30 
  
  Uruguay-Lucia, Paraguay-Sofia) for the purpose of  exchanging information from their respective 
customs records. 
170. Moreover, in 2010, Decision CMC No. 17/10 on the MERCOSUR Single Customs 
Document (DUAM), which establishes a single official  model for registering declarations for customs 
procedures and operations within MERCOSUR, was approved on the basis of a draft put forward 
by Argentina.  This document seeks to standa rdize the information used by MERCOSUR customs 
administrations in their customs computer systems. 
171. Another advance in computerization is the International Customs Transit Computerized 
System (SINTIA) aimed at digitalizing the ma nual land cargo system which currently operates 
through the paper input of International Cargo Ma nifests (ICM/CTD) and/or International Parcel 
Manifests ( Manifiesto de Encomiendas Internacional  (MIE/CTD) ).  The purpose of this system is to 
allow real-time access to the inform ation in question.  During the first half of 2012 the bilateral pilot 
test developed jointly by Argentina and Paraguay w as continued and, at the same time, advances in 
implementation at regional level were consolidated. 
172. Work has also been done on the Digital Certif icate of Origin (COD), including in particular 
the publication of MERCOSUR Standard CCM/DIR. No. 04/10, which gives certificates of origin 
issued and signed electronically the same legal va lidity and the same value as paper certificates.  
Although some States Parties have made less progress than others , since 2010 the signing of legal 
instruments of bilateral scope has been encouraged  so as to make it possibl e to commence the pilot 
tests necessary for the effective implementation of the system (Project SCOD). 
173. In this connection, it is worth recalling the approval of the procedures and 
technical specifications of the LAIA Digital Certificate of Origin (ALADI/CR/Resolution 386 
of 4 November 2011).  The member countries are currently working on the operational and 
homologation aspects of the system and have reached different stages in the process.  Within this 
context, Argentina and Chile have agreed to in itiate the activities necessary to start implementing a 
bilateral test plan with a view to carry ing out external homologation under the terms 
of Resolution CR/386. 
174. Progress has also been made in integrating production, through pr omotion of balanced 
industrialization among the partners.  To that end,  meetings are encouraged  between entrepreneurs 
from the four countries to define alternatives in r espect of regional production complementarity and to 
cooperate with governments in identifying the cha nges in public policy necessary to intensify this 
process.  In this connection, work is proceedi ng on the Competitiveness Forum Programme, with the 
aim of identifying areas in which regional industrial complementarity favours a greater degree of specialization to improve efficiency and, thr ough concrete measures, to make MERCOSUR products 
more competitive in the international market. 
175. Similarly, studies and projects are being conducted on investment in infrastructure 
in MERCOSUR and its associate countries, as we ll as on highway and energy integration, 
development of port facilities and a revival of shipbuild ing.  In view of the differences in levels of 
development within MERCOSUR, the question of st ructural asymmetries has become an increasingly 
relevant issue on the agenda for deepening the integration process, especially since 2003. 
176. Within this context, it is worth noting the creation of the MERCOSUR Structural 
Convergence Fund (FOCEM), which began to func tion in 2006.  This is the first community Argentina WT/TPR/G/277 
 Page 31 
 
 
  mechanism to permit a net transfer of resources from the larger to the smaller MERCOSUR 
economies. 
177. The Fund is intended to finance programmes to promote structural convergence, develop 
competitiveness and foster social cohesion, particul arly in the smaller ec onomies and less developed 
regions, and to support the functioning of the instit utional structure and strengthen the integration 
process. 
178. In 2010, the MERCOSUR States Parties decided to revise the MERCOSUR Protocol on 
Government Procurement.  With this instrument  MERCOSUR is seeking to equip itself with a tool 
that can be used to improve the transparency of government procurement on the basis of 
the MFN clause and the granting of national treatme nt for a significant percentage of tendering 
procedures in respect of goods, services and public works. 
179. As a result of the liberalization of the services sectors under the Montevideo Protocol on 
Trade in Services, at the end of 2009, the Comm on Market Council approved the "Seventh Round of 
Negotiations on Specific Services-Related Commitments". 
180. Deeper institutionalization of the integration process is an ongoing objective and, in this 
connection, it is worth noting the operation of th e Permanent Review Cour t (TPR), established under 
the Olivos Protocol for the Settlement of Disputes within MERCOSUR, approved on 18 February 2002. 
181. In addition to acting as the sole instance in certa in cases, the TPR reviews the decisions of the 
Ad Hoc Arbitration Courts which hear the case in the first instance and thus bears a certain 
resemblance to the Appellate B ody provided for in the WTO Unde rstanding on Rules and Procedures 
Governing the Settlement of Disputes.  The aim in  establishing the Permanen t Review Court was to 
foster the uniform interpretation of the entir e body of MERCOSUR legislation and establish a 
common jurisprudence, so as to strengthen the in stitutional framework of MERCOSUR and give it 
greater legal certainty. 
182. Another important aspect of the instituti onalization of MERCOSUR is the effective 
establishment of the MERCOSUR Parliament, the body representing the peoples of MERCOSUR, as 
a common forum reflecting the pluralism and divers ity of the region and contributing to democracy, 
participation, transparency and social legitimacy in  the development of the integration process and its 
regulations. 
183. It is also important to note the role played  by the Committee of Permanent Representatives of 
MERCOSUR in consolidating the integration process.   This body proposes concrete measures with a 
community focus to enhance social, political and parliamentary relations within MERCOSUR and is 
notable for the part it played in the genesis of the MERCOSUR Structural Convergence Fund (FOCEM), which has proved an excellent tool  for reducing asymmetries between the MERCOSUR 
economies. 
184. A more recent development is the creation of the post of High Representative of 
MERCOSUR by Decision CMC No. 63/10, for the purpose of giving impetus and depth to the integration process.  Moreover, rules have been enacted to step up the process of transforming the 
MERCOSUR Secretariat into a body with technical and not just administrative functions and to 
improve the regulations relating to personnel recruited by the Secretariat and other MERCOSUR 
bodies (Decisions CMC Nos. 03/12 and 04/12). WT/TPR/G/277 Trade Policy Review 
Page 32 
  
  185. By fostering and following up all these acti ons, Argentina is promoting progress in the 
development and intensification of regional integration and the achievement of the main goal of the 
Treaty of Asunción, which is the establishment of the common market. 
186. Lastly, it is worth noting the first enla rgement of MERCOSUR through the accession of 
Venezuela.  The terms and conditions of accession were set out in the Protocol of Accession of the 
Bolivarian Republic of Venezuela to MERCOSUR, si gned at presidential level by the five countries 
on 4 July 2006 and in force since 12 August 2012. 
187. Under Decision CMC No. 27/12, the Bolivarian Re public of Venezuela acquired the status of 
State Party and is participating in MERCOSUR with  all rights and obligations, in accordance with 
Article 2 of the Treaty of Asunción and under the terms of the Protocol of Accession.  The Ad Hoc 
Working Group set up by Decision CMC No. 12/07 is working on the effective conclusion of Venezuela's process of accession to MERCOSUR, in line with MERCOSUR's governing principle 
of gradualism. 
188. It is also necessary to point out that when  democratic order broke down in Paraguay as a 
consequence of the removal from office of Preside nt Lugo on 22 June 2012, Argentina, Brazil and 
Uruguay decided to suspend the Republic of Para guay's right to participate in MERCOSUR bodies 
and discussions, pursuant to Article 5 of the Pr otocol of Ushuaia on Democratic Commitment 
in MERCOSUR. 
189. The Protocol provides for the application of measures as a result of the breakdown of 
democratic order in one of the States Parties.  Th e measures may range from suspension of the right to 
participate in the various organs of the respectiv e integration processes to suspension of the rights and 
obligations stemming from those processes. 
190. The suspension adopted is limited to restric ting participation in MERCOSUR deliberations 
and in the decision-making process, it having been agr eed that this should not affect the wellbeing of 
the people of Paraguay and an express guarantee ha ving been given that the FOCEM projects relating 
to Paraguay would be continued.  Under Article 7 of the Protocol of Ushuaia, the measures to which 
Article 5 relates will be terminated when the other States Parties agree that the full re-establishment of 
democratic order has been verified. 
(ii) The LAIA and extra-regional agreements 
191. In accordance with the provisions of the Econom ic Complementarity Agreements (ECA) that 
Argentina, as a MERCOSUR State Party, has signe d within the framework of the Latin American 
Integration Association (LAIA), Administrative Co mmission meetings were held in connection with 
ECA No. 35 (MERCOSUR-Chile), ECA No. 36 (M ERCOSUR Bolivia), ECA No. 55 (MERCOSUR 
Mexico), ECA No. 58 (MERCOSUR Peru), ECA No. 59 (MERCOSUR Venezuela, Colombia and 
Ecuador), and ECA No. 62 (MERCOSUR Cuba).  A meeting of the Administrative Commission 
for ECA No. 6 (Argentina Mexico) was also held. 
192. Between 2006 and 2011, Argentina, as a MERCOS UR State Party, signed trade agreements 
of differing scope with third countries.  Some of these are already in force while others are awaiting parliamentary ratification.  Moreover, discussions ar e being held with other countries with a view to 
strengthening trade relations. 
193. The Fixed Preferences Agreement between MERCOSUR and SACU (Southern African 
Customs Union) was signed in December 2008.  It was signed by the SACU Ministers in Lesotho Argentina WT/TPR/G/277 
 Page 33 
 
 
  on 3 April 2009.  This Agreement has not yet entered into force since the process of ratification by the 
parliaments of all the signatory states is not yet complete.  The Agreement (which provides for preference levels of 10%, 25%, 50% and 100%) will c over approximately 1,900 tariff items. 
194. The Fixed Preferences Agreement between MERCOSUR and India was signed in 
January 2005 and entered into for ce on 1 June 2009.  This provides for preferential access to trade in 
goods for around 450 tariff items.  Concessions are gr anted by means of fixed tariff preferences with 
levels of 10%, 20% and 100% .  Two meetings of the Joint Administration Committee have been held 
within the framework of the Agreement. 
195. Where Free Trade Agreements are concerned, on 18 December 2007 a Free Trade Area 
Agreement was concluded between MERCOSUR and the State of Israel.  At the time, the Agreement 
was the first and only extra-regional trade agre ement and represented a further advance in the 
international integration of the MERCOSUR countries.   It provides for the formation of a free trade 
area for goods under a Trade Liberalization Programme  (TLP) to reduce tariffs within a maximum 
of ten years, with certain exceptions (4% of the respective tariff universe).  On 16 March 2011, the 
National Congress approved this Agreement, under  Law No. 26.670, which entered into force 
between Argentina and the State of Israel on 9 September of that year. 
196. The Free Trade Agreement between MERCOSU R and Egypt was signed on 2 August 2010.  
The Agreement provides for th e establishment of a free trade area for goods under a Trade 
Liberalization Programme (TLP) to reduce tariffs within a maximum of ten years, with certain 
exceptions (4% of the respective tariff universe)  for which no tariff reduction is envisaged.  
This Agreement has not yet entered into force as it  is still in the process of being ratified by the 
national parliaments. 
197. Finally, on 20 December 2011 a Free Trad e Agreement was signed between MERCOSUR 
and Palestine.  This Agreement w ill have to undergo the process of parliamentary ratification in all the 
Signatory Parties before it can enter into force. 
198. The negotiations for a Free Trade Agreement between MERCOSUR and the European Union 
are part of the Inter-Regional Association Agreem ent signed by the Parties in 1995 and in force 
since 1999.  They were relaunched in May 2010 after a six-year interruption starting in 2004.  These 
negotiations are based on a set of three pillars - together with cooperation and political dialogue 
issues - which form constituent parts of the Agreement. 
199. The trade pillar negotiations are being conduc ted in the framework of the Bi-Regional 
Negotiations Committee (BNC), the last m eeting of which was held in Brasilia 
from 22 to 26 October 2012.  Within the BNC, 11 working groups are holding meetings on the various topics and regulatory aspects to be covered by  the future Agreement, namely:  Market Access 
for Goods;  Rules of Origin;  Technical Barriers to  Trade;  Sanitary and Phytosanitary Measures;  
Intellectual Property Rights/Geographical Indications /Wines;  Dispute Settlement;  Trade Protection;  
Competition Policy;  Customs;  Services/E stablishment and Government Procurement. 
IV. CONCLUSIONS 
200. During the review period Argentina expanded th e model of economic growth with social 
inclusion as well as increased competitiveness, base d on active and integrated policies, and developed 
production by means of a sustainable and genuine improvement in competitiveness, while generating 
quality employment and a steadily rising standard of living. WT/TPR/G/277 Trade Policy Review 
Page 34 
  
  201. Even in an unfavourable international environmen t, characterized by the international crisis 
that began in 2008, the action taken resulted in high rates of economic growth and substantial 
improvements in the social indicators, underpinne d by a vigorous policy of wage recovery and 
stronger domestic demand. 
202. The increased activity not only kept pace with the growth in domestic demand but was also 
sufficient to supply foreign markets.  In fact , the policies aimed at improving competitiveness, 
together with an active trade promotion policy, re vitalized exports, resulting in the incorporation of 
new markets, the participation of more businesses, and the diversification of the export basket.  In its 
turn, the sustained increase in exports made it possi ble to generate a trade surplus which helped to 
improve the balance of payments and the sustainability of economic policy. 
203. Where trade policy is concerned, Argentina c ontinued to implement a series of initiatives 
aimed at expanding and improving its integration in in ternational trade, through active participation in 
the various integration organizations, forums a nd agreements at multilateral and regional level. 
204. At multilateral level, it reaffirmed its commit ment to the multilateral trading system and 
continued striving to achieve a more open (particul arly in the agricultural sector), non-discriminatory 
system that takes into acc ount the needs and interests of the developing countries. 
205. The active participation of Argentina's repr esentatives in the regular activities of the 
World Trade Organization, in the Doha Developm ent Round negotiations, and in the Group of 20 
(G-20) is a true reflection of this commitment. 
206. At regional level, Argentina attaches vital importance to MERCOSUR, which it regards as a 
key strategic foreign policy project and an essentia l platform for improving the conditions of access 
for Argentine exports to other market s, within and outside the region. 
207. During the review period, Argentina worked ha rd to strengthen the process of building the 
Common Market, while concluding trade agreem ents with a view to intensifying trade. 
__________