WORLD  TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/S/277 
13 February 2013 
 
 (13-0670) 
Trade Policy Review Body  
  
 
   
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
ARGENTINA 
 
 
  
This report, prepared for the fourth Trad e Policy Review of Argentina, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Argentina on its trade policies and practices.  Any technical questions arising from this report may be addressed to 
Mr Angelo Silvy (Tel. 022/739 5249) and Ms Eugenia Lizano 
(Tel. 022/739 6578).  Document WT/TPR/G/277 contains the policy statement submitted by Argentina. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Argentina.  This report was drafted 
in Spanish. Argentina WT/TPR/S/277 
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  CONTENTS 
 
  Page 
SUMMARY ix 
 (1)   INTRODUCTION  ix  
 (2)   ECONOMIC ENVIRONMENT  ix  
 (3)   TRADE AND INVESTMENT POLICY  x  
 (4)   TRADE POLICIES BY MEASURE  xi  
 (5)   TRADE POLICIES BY SECTOR  xiv  
I.  ECONOMIC ENVIRONMENT 1  
 (1)   OVERVIEW  1 
 (2)   MACROECONOMIC TRENDS  1  
(i)  Structure and evolution of the economy 1  
(ii)  Fiscal policy 4 
(iii) Monetary and exchange rate policy 8 
(iv) Balance of payments 12  
 (3)   TRADE AND INVESTMENT FLOWS  13  
(i)  Trend of merchandise trade 13 
(ii) Trade in services 17 
(iii) Foreign investment 18  
 (4)   OUTLOOK  19 
II.  TRADE AND INVESTMENT REGIME 21  
 (1)   OVERVIEW  21 
 (2)   TRADE POLICY FORMATION AND IMPLEMENTATION  21  
(i)  Institutional and legal framework 21 
(ii) Trade policy formulation and objectives 25  
 (3)   INTERNATIONAL TRADE RELATIONS  26  
(i)  WTO 26 
(ii) Regional agreements 30  
 (4)   INVESTMENT REGIME  33  
(i)  General investment framework 33 
(ii) Incentives for investment, manufacturing and trade 36 
III.  TRADE POLICIES BY MEASURE 47  
 (1)   OVERVIEW  47 
 (2)   MEASURES DIRECTLY AFFECTING IMPORTS  48  
(i)  Procedures, documentation and registration 48 
(ii) Customs valuation 53 
(iii) Rules of origin 54 
(iv) Tariffs 56 
(v) Other charges affecting imports 62 
(vi) Prohibitions, restrictions and import licences 69 (vii) Other import-related measures 76 
(viii) Contingency measures 77 WT/TPR/S/277 Trade Policy Review 
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    Page 
 
(ix) Technical regulations and standards 83  
(x)  Sanitary and phytosanitary measures 87  
 (3)   MEASURES DIRECTLY AFFECTING EXPORTS  91  
(i)  Procedures, documentation and registration 91 
(ii) Export duties and taxes 96 (iii) Export restrictions 97 
(iv) Support for exports 98 
(v) Financing, insurance and guarantees 103 (vi) Export promotion 105  
 (4)   O
THER MEASURES AFFECTING PRODUCTION AND TRADE  105  
(i)  Competition policy 105 
(ii) Price controls 107 
(iii) Incentives 109 
(iv) State trading and State-owned enterprises 109 (v) Government procurement 112  
(vi)  Intellectual property protection 116 
IV.  TRADE POLICIES BY SECTOR 122  
 (1)   O
VERVIEW  122  
 (2)   AGRICULTURE , FORESTRY , FISHING AND RELATED PROCESSING ACTIVITIES  123  
(i)  Agriculture and food processing 123 
(ii) Forestry 135 
(iii) Fisheries 136  
 (3)   MINING AND HYDROCARBONS  137  
(i)  Main features 137 
(ii) Mining (excluding hydrocarbons) 139 (iii) Hydrocarbons 143  
 (4)   M
ANUFACTURING  152  
(i)  Overview 152 
(ii) Trade measures and support measures 153  
 (5)   ELECTRICITY  157  
(i)  Features of the sector and operation of the market 157 
(ii) Legal and regulatory framework 159  
 (6)   SERVICES  161 
(i)  Main features and multilateral commitments 161 
(ii) Telecommunications 162 
(iii) Financial services 168 
(iv) Air transport and airports 184 
(v) Maritime transport 188 
(vi) Professional services 193 (vii) Tourism 195 
REFERENCES 201 
APPENDIX TABLES 205 
 Argentina WT/TPR/S/277 
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  CHARTS 
  Page  
I. ECONOMIC ENVIRONMENT 
 I.1 Trade in goods by product, 2006-2011 15 
I.2 Merchandise trade by trading partner, 2006-2011 16 
 III. TRADE POLICIES BY MEASURE 
 
III.1 Frequency distribution of MFN tariff rates, 2012 59 III.2 Sanitary and phytosanitary import controls 90 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 I.1 Basic economic indicators, 2006-2012 2 
I.2 Structure of GDP in expenditure terms, 2006-2012 3 
I.3 National Government finances (accruals basis), 2006-2012 5 
I.4 Tax expenses, 2006-2012 6 
I.5 Main monetary indicators, 2007-2012 10 I.6 Balance of payments, 2006-2012 12 
I.7 Trade in services, 2006-2012 17 
I.8 Foreign investment by investor, 2006-2010 18 I.9 Foreign investment by activity, 2006-2010 18 
I.10 Projections of the main macroeconomic variables, 2012 and 2013 20 
 II. TRADE AND INVESTMENT REGIME 
 
II.1 Decrees issued on grounds of necessity or urgency, 2007-2012 23 II.2 Powers of the Federal Government 24 
II.3 Ministries involved in the formulation and/or implementation of trade policy 25 
II.4 Principal notifications to the WTO, 1 January 2007-30 October 2012 25 II.5 Status of dispute-related WTO matters involving Argentina, 
1 January 2007-19 October 2012 28 
II.6 Preferential agreements in force and/or signed between 
1 January 2007 and 19 October 2012 31 
II.7 Fiscal incentives, 2007 and 2011 37 
II.8 Provincial fiscal incentives 39 
II.9 Financing of investment and competitiveness, 2007 and 2012 41 
II.10 Incentives for research, development and improving competitiveness, 2007 and 2011 43 II.11 Definition of enterprise 45 
II.12 Support programmes for MSMEs, 2007 and 2012 45 
 III. TRADE POLICIES BY MEASURE 
 
III.1 Products subject to prior import authorization 51 III.2 Some provisions concerning non-preferential rules of origin 54 
III.3 Preferential origin criteria 55 
III.4 MFN tariff structure, 2006 and 2012 57 III.5 Summary of MFN tariff, 2012 57 
III.6 Lines for which the MFN tariff is greater than the bound tariff 59 
III.7 Summary of preferential tariffs (HS 2007), 2012 61 WT/TPR/S/277 Trade Policy Review 
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    Page  
III.8 Import taxes 62 
III.9 Other VAT rates 63 
III.10 Exemption from VAT 65 III.11 Excise duties, 2007 and 2012 66 
III.12 Other import taxes 67 
III.13 Income/profits tax on imports 68 III.14 Import prohibitions in force in 2007 and 2012 70 
III.15 Purpose and scope of licensing 74 
III.16 Products subject to automatic and n on-automatic import licences by section of 
the HS07, 2006 and 2012 76 
III.17 Anti-dumping and countervailing measures, 2006-2012 81 
III.18 Safeguard investigations and measures notified to the WTO, 2006-June 2012 82 III.19 Mandatory certification regimes 85 
III.20 Bodies responsible for sanitary and phytosanitary controls 88 
III.21 Products requiring a quality standards certificate for export 94 III.22 Export duties, 2006-2011 97 
III.23 Exports prohibited or subject to quotas since 2007 98 
III.24 Financing of exports by the Investment and Foreign Trade Bank 103 
III.25 Financing of exports by the Bank of the Argentine Nation (BNA) 104 
III.26 Anti-competitive practices 106 III.27 Powers of the National Commission for the Defence of Competition 106 
III.28 Sanctions 107 
III.29 State-owned enterprises 110 III.30 State participation in private companies through the Sustainability Guarantee Fund (FGS) 111 
III.31 Procurement procedures 114 
III.32 Participation in WIPO treaties 116 III.33 Laws governing intellectual property rights 117 
 
IV. TRADE POLICIES BY SECTOR  
IV.1 Rates of export duty on the main agricultural products and byproducts covered by 
Law No. 21.453 125 
IV.2 Special BNA lines of credit for the agricultural sector 129 
IV.3 Compensation schemes in the agricultural sector:  resolutions approved and135 
amounts, 2007-2011 135 
IV.4 Amounts disbursed to promote mining, 2006-2010 141 
IV.5 Factors for determining the export tax on oil, pursuant to Resolution No. 1.312/2008 
of the Secretariat for Energy  ("Oil Plus" Programme) 149 
IV.6 Reserve replenishment index for determining additional tax credit certificates, pursuant to 
Resolution No. 1.312/2008 of the Secretariat for Energy ("Oil Plus"  Programme) 150 
IV.7 Profitability structure by  group of banks, 2011 170 
IV.8 Risk-weighting of assets for the purpose of determining the minimum credit risk 
capital requirement 173 
IV.9 Some economic indicators for the tourism sector, 2005-2011 195 
IV.10 Some incentives for investment in the tourism sector, 2007 and 2012 198 
IV.11 Tourist accommodation, 2005-2011 200 Argentina WT/TPR/S/277 
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  APPENDIX TABLES 
  Page  
I. ECONOMIC ENVIRONMENT 
 AI.1 National Government finances (cash basis), 2006-2012 207 
AI.2 Tax revenue, 2006-2011 209 
AI.3 Tax expenditure arising from economic promotion regimes, 2007-2012 210 AI.4 Summary of the main foreign trad e and exchange regulations in force 
as at October 2012 212 
AI.5 Merchandise exports (f.o.b.) by product, 2006-2011 215 AI.6 Merchandise imports (c.i.f.) by product, 2006-2011 217 
AI.7 Merchandise exports (f.o.b.) by trading partner, 2006-2011 219 
AI.8 Merchandise imports (c.i.f.) by trading partner, 2006-2011 220  
III.  TRADE POLICIES BY MEASURE 
 AIII.1 Anti-dumping duties as at 1 November 2012 221 
AIII.2 Goods that may be subject to official export prices 227 
 Argentina WT/TPR/S/277 
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  SUMMARY 
(1) INTRODUCTION  
1. Although affected by the world economic crisis of 2008-2009, the Argentine economy has 
recovered since then, achieving GDP growth rates of  about 9% in 2010 and 2011.  However, growth 
declined to an annual rate of 2.4% in the first half of 2012, while at the same time, accelerating 
inflation has continued to be a source of concern.   Argentina has benefited considerably from its 
participation in the multilateral trading system , doubling its total exports between 2005 and 2011, a 
factor which contributed to its rapid recovery from the crisis.  Higher international prices for its main 
exports have also contributed to the recovery.   
2. Argentina makes active use of trade policy measure s as an instrument to attain its long-term 
goals, such as promoting overall economic growth or  fostering industrialization, development or 
self-sufficiency.  In addition, Argentina also ma kes use of trade policy instruments to achieve 
short-term objectives, such as containing inflation and maintaining balance-of-payments equilibrium.  
For instance, Argentina has sought to dissociate the e ffects of fluctuations in international prices of 
exports from its domestic market prices through do mestic supply agreements with producers, and by 
using export duties, which are one of the main sour ces of tax revenue.  It has also used mechanisms 
such as import licensing and compensation agreements  with producers to equilib rate its trade balance 
and promote domestic production.  The use of trade policy to achieve short-term objectives requires 
constant policy adjustments that add to the complexi ty of the trade regime, making it less predictable.  
At the same time, it generates additional costs for the economy. 
3. Argentina's trade policy during the review peri od was generally designed to boost exports and 
promote domestic production, sometimes through impor t substitution.  However, the application of 
this combination of policies can sometimes pr oduce opposing effects.  On the one hand, the 
production and exportation of manufactured goods is being promoted through a series of tax 
incentives, while on the other, export duties are bei ng applied and different registration requirements 
imposed for the exportation of certain agricultural products, at the risk of undermining the country's 
export capacity and its competitiveness.  Moreover, the use of import licensing and other 
administrative measures relating to imports can add to  production costs, thereby increasing the cost of 
exportable goods. 
(2) ECONOMIC ENVIRONMENT  
4. The Argentine economy has recovered from the effects of the world crisis:  while real GDP 
growth did not exceed 0.9% in 2009, it picked up considerably in 2010 and 2011, reaching rates 
of 9.2% and 8.9% respectively.  This growth was driven in part by strong domestic demand, and was 
largely due to Argentina's status as a major exporte r of primary products.  Argentina also made active 
use of fiscal, monetary and income policies to stim ulate its economy and overcome the effects of the 
crisis.  More recently, however, growth has slowed  down as a result of a fall in domestic and foreign 
demand.  Although real GDP growth reached 5% in the first quarter of 2012 year-on-year, the 
economy stagnated in the second quarter;  GDP grow th for the first half of 2012 was 2.4% with 
respect to the same period in 2011. 
5. Argentina's public finances showed a surplus dur ing most of the review period, but they 
deteriorated in 2011 and 2012.  Tax revenue as a sh are of total revenue contracted from 19% of GDP 
in 2006 to 14.3% in 2011.  This was compensated in part by social security contributions, whose share 
doubled, largely as a result of the nationalization of the pension system.  Among the different taxes, WT/TPR/S/277 Trade Policy Review 
Page x 
  
  the share of VAT and the Income/Profits Tax ( Impuesto a las Ganancias ) grew during the period.  
The share of export duties also grew, from 2.2% of GDP in 2006 to 2.9% in 2011, while import duties accounted for 0.8% of GDP in both those years.  Export duties accounted for some 20.5% of total tax 
revenues in 2011 up from 11.8% in 2006. 
6. Argentina has a managed floating exchange rate system.  Over the past few months, the peso 
has appreciated in real terms against the dollar.  Th e acceleration of inflation is a source of concern, 
although it does not appear to be fully reflected in the official data, which takes into account only 
variations in the consumer price index (CPI) of th e Greater Buenos Aires area.  While export policy is 
seeking to stabilize the price of exportable products in the domestic market by applying duties, 
the import policy that is being applied, by discour aging imports, could push up the price of imported 
products, thereby affecting the level of inflation. 
7. Argentina has benefited considerably from its participation in the world economy during the 
period under review, despite implementing inward-looki ng policies that could have discouraged trade.  
Merchandise exports reached some US$84 billion in 2011, almost twice the level reported for 2006.  
Agricultural products and fuel exports accounted for approximately one third of total exports, with 
processed agricultural goods (including meat) acco unting for another third, and manufactured goods 
for the remaining third.  Argentina's export markets are relatively diversified:  56% of total exports 
in 2011 went to the seven main export destin ations.  Merchandise imports reached US$74 billion 
in 2011.  The surplus on the trade balance has been declining over the past few years, mainly owing to 
a deterioration of the oil balance, which posted a deficit of US$3 billion in 2011, 50% higher than 
in 2010. 
8. After peaking in 2009, the balance-of-pay ments current account surplus decreased 
considerably in 2010 and 2011, reflecting not only a more rapid increase in imports of goods and 
services than in exports, but also a sharp in crease in the outflow of investment income. 
9. During the period under review, the authorities continued to implement a debt reduction 
policy.  The objectives of this policy for 2012 in cluded obtaining the necessary funds to service the 
debt maturing that year that could not be covere d by the expected primary surplus, and further 
reducing the burden of future debt servicing in relation to projected gove rnment revenue.  In this same 
context, the National Government also adopted measur es to reduce debt in the provinces.  As a result 
of this debt reduction policy, GDP growth, and a pr imary surplus in public finances during the period 
under review, the share of public debt in GDP was reduced from over 60% in 2006 to 41.6% in 2011. 
(3) T
RADE AND INVESTMENT POLICY  
10. During the review period, Argentina used trade policy as an instrument to achieve 
socially inclusive economic development targets th at, according to the authorities, seek to combine 
economic growth with objectives such as reducti on of unemployment and poverty.  Since 2006, 
several changes were made to the institutional stru cture responsible for formulating and implementing 
trade policy.  The Ministry of the Economy and Pu blic Finance (MEFP) is currently responsible for 
trade policy. 
11. The President has the authority, under the C onstitution, to issue "necessity and urgency" 
decrees when exceptional circumstances make it impossible to observe the usual constitutional 
provisions governing the enactment of a law, except in the case of legislation governing criminal, tax, 
electoral matters or political parties.  However, su ch decrees are subject to approval or rejection by 
each of the Chambers of Congress.  Unless there is an explicit ruling to the contrary, the decrees enter Argentina WT/TPR/S/277 
 Page xi 
 
 
  into force as soon as they are issued.  A number of  these "necessity and urgency" decrees have been 
issued since 2007, including the decree which provide d for the temporary intervention in Yacimientos 
Petrolíferos Fiscales (YPF) for a period of 30 days  in order to ensure business continuity, preservation 
of the company's assets and wealth, and the supply of fuel, and to ensure that the country's needs were 
met. 
12. Argentina is a founding member of MERCOSUR, and in that context it has signed 
five preferential agreements since 2007, of which only two have entered into force for Argentina 
(India and Israel).  It also has a number of agreements under the Latin American Integration 
Association (LAIA). 
13. Foreign investment is authorized without rest riction in all sectors with the exception of 
fisheries, mass media, the purchase of land and real estate in certain areas, and cabotage services.  In the insurance sector, there is a reciprocity requirement .  Foreign investment is generally not subject to 
prior approval. 
14. The Investment Law guarantees the right to repatriate investments and to transfer net and 
realized profits abroad at an y time.  However, since 2001 Arge ntina has introduced numerous 
requirements for the purchase and transfer of foreign currency.  These controls have become a central 
feature of Argentina's current economic policy and ar e used to boost reserves, manage the exchange 
rate, limit private sector foreign currency liabilities and prevent capital flight. 
15. Argentina authorizes the payment of interest, dividends, profits and royalties abroad without 
restriction provided the accounts have been closed and cer tified by an external auditor.  It also allows 
for the repatriation of investment, after it has re mained one year in the country, with certain 
limitations.  In principle, there is no quantita tive limit on the repatriation of foreign direct 
investment (FDI), but since October 2011, for FDI to  be repatriated, the funds for any new investment 
or purchase of shares in local companies and real estate must have entered and been liquidated through the Single Free Exchange Market (MULC).  If the foreign currency has not entered through the MULC, the investor must apply to the Ce ntral Bank of the Argentine Republic (BCRA) for 
authorization to repatriate FDI.  Furthermore, th e Central Bank's prior authorization is required for 
any repatriation of funds invested in financial in stitutions or non-financial companies that control 
financial institutions. 
16. Argentina has a variety of incentive schemes at the national and provincia l levels to promote 
investment (domestic and foreign), competitiven ess, and exports.  These include horizontal and 
sectoral programmes to stimulate investment in capital goods and technological innovation, to 
promote the development of small and medium enterp rises (SMEs), and to facilitate access to credit at 
preferential or fixed interest rates.  Some of these programmes are contingent on the purchase of domestic goods.  There are also incentives to encour age investment in certain specific sectors of the 
economy.  Argentina grants incentives on the basi s of geographical location and to companies 
established in the Free Zones. 
(4) T
RADE POLICIES BY MEASURE  
17. During the period under review, Argentina's us e of non-tariff restrictions has increased, 
mainly related to registration requirements, im port and export procedures, and import licensing.  
Moreover, the clarity of the regime has tended to be  undermined by the apparent lack of transparency 
in the application of some measures. WT/TPR/S/277 Trade Policy Review 
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  18. Import procedures in Argentina have undergone a number of changes since the last review, 
some of which, according to the authorities, were  intended to facilitate trade, for instance the 
introduction, starting on 1 February 2012, of the Advance Sworn Import Declaration (DJAI) for all 
imports for consumption, and the elimination of the Prior Automatic Import Licence (LAPI) as 
from 5 September 2012.  However, for certain imports,  the product and/or importer still need to be 
registered. 
19. Argentina continues to use precautionary cr iterion values for imports to safeguard the 
country's fiscal interests.  During the period under re view, the list of products and/or country groups 
subject to criterion values has changed several times.   In order to determine the criterion values, the 
Directorate-General of Customs (DGA) considers, inter alia , the official declared value at the place of 
importation for consumption of the goods and the in formation from databases available in the public 
or private sector. 
20. Since the last review, the structure of Arge ntina's tariff has undergone a significant change, 
with the elimination, in 2010, of minimum specifi c import duties (DIEMs) that affected 8% of all 
tariff lines.  Argentina now applies only ad valorem  tariffs.  However, the law provides that DIEMs 
can be re-established in certain circumstances.  Si nce 2006, tariff protection has increased:  the simple 
average MFN tariff increased from 10.4% in 2006 to 11.4% in 2012.  The average applied MFN tariff 
in 2012 was 10.1% for agricultural products (WTO de finition) lower than the protection of 11.5% 
granted to non-agricultural products.  Tariff rates of 15% or lower applied to 73% of tariff lines, 
while 27% of tariff lines were subject to rates higher than 15%;  4.2% were subject to a rate of 35% 
(4.4% in 2006).  There has been no significant variat ion since 2006 in the sect ors enjoying the highest 
tariff protection:  they are still textiles and clothing,  footwear and certain vehicles, as well as oil seeds. 
21. Most imports in Argentina are still subject to a statistical tax of 0.5% of the customs value 
with a cap of US$500, or a verification of destina tion charge up to a maximum of 2% of the customs 
value. 
22. Argentina does not apply tariff quotas to MFN imports.  However, it does use preferential 
tariff quotas in certain trade agreements. 
23. Imports may be subject to automatic or non- automatic licensing.  The number of products 
subject to import licensing, both automatic and non- automatic, increased during the review period.  
However, in September 2012, Argentina eliminat ed the LAPI, thereby substantially reducing the 
number of tariff lines subject to automatic licensi ng.  The use of non-automatic licensing increased 
during the review period, in particular for textiles and textiles articles, and machinery and mechanical 
appliances.  Products subject to non-automatic impo rt licensing are generally subject to specific 
technical regulations.  A sworn declaration (confor mity certificate) is also required for imported 
products subject to specific technical regulations. 
24. The Internal Commerce Secretariat ( Secretaría de Comercio Interior ) has introduced 
mandatory certification systems for certain produc ts, issuing resolutions establishing the type of 
certification that has to be used, the symbols that  must be displayed on the products and how they 
should be marked.  Manufacturers,  importers and distributors of products and services subject to 
mandatory certification systems must provide the Internal Commerce Secretariat with an authenticated copy of the conformity certificates issued by the recognized certification bodies before 
engaging in any trade.  In some cases, the accuracy  of the information provided has to be certified 
before the products can be placed on the market or  imported.  These requirements have been imposed, 
in part, with the declared aim of protecting consumers. Argentina WT/TPR/S/277 
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  25. Argentina ranks fourth among Members that have recourse to anti-dumping measures in 
the WTO.  During the review period, it introduced new legislation to regulate investigations and 
reviews of existing measures.  During 2006-2011,  Argentina applied 57 anti-dumping measures.  
However, during the same period, it did not apply any countervailing measures nor did it initiate any 
investigations. 
26. Although one of the objectives of Argentina's trade policy is to promote exports, the 
Argentine trade regime imposes mechanisms to cont rol them as a means of ensuring domestic supply 
and price stability.  Consequently, in addition to th e general registration requi rement, exports such as 
grain, meat and dairy products have to be entered into a specific register.  Argentina maintains a value 
control system for exports for consumption aimed at  controlling the declared value so as to guarantee 
the revenue obtained through export duties.  Certai n agricultural products are also still subject to 
official export prices.  These official prices are established to assess the export duties, fees and other 
taxes on exports or to calculate reimbursements and refunds in connection with exports of the goods 
in question. 
27. Argentina continues to apply export duties.  Th ese duties are used as a tool to cushion the 
effect of exchange rate fluctuations on domestic prices, particularly those of household necessities, 
and as a tax measure to finance public spending.  With a few exceptions, all exports are subject to 
export duties.  The rates have incr eased over the review period, and currently range from 5% to 100%.  
Since Argentina is a major exporter of agricultura l products and a leading world exporter of certain 
products such as oilseed cake, cereals, and soya and its by products, the application of export duties 
could have an impact on world prices of these products. 
28. However, at the same time, to promote exports  Argentina has introduced a number of tariff 
concession schemes which include:  various investment promotion programmes, the temporary admission regime ( Destinación suspensiva de importación temporal ), the In-Factory Customs 
Regime (RAF), the free zone regime and special cu stoms zones.  Some of these regimes, such as 
subsidies for mining and forestry activity, the free zone regime, and the capital goods, information 
technology and telecommunications products regime , have been notified to the WTO Committee on 
Subsidies. 
29. According to the Law on the Defence of Competition, any act or conduct relating to the 
production and exchange of goods or services is prohibited if it has the aim of limiting, restricting, 
undermining or distorting competition or market access, or if it constitutes an abuse of a dominant 
market position that harms the general economic interest.  The practices themselves are not 
prohibited, but only their effects.  The law is appl icable to all natural or legal persons, public or 
private, that undertake economic activities in Ar gentine territory, or that undertake economic 
activities outside the country insofar as their acts, activities or agreements affect the 
Argentine market.  During the period under review 14 rulings were issued regarding anticompetitive 
practices in industries such as audiovisual, oil, and gas and cement distribution. 
30. Argentina continues to implement a price re gulation policy to stimulate consumption, 
strengthen domestic production and improve income distribution.  Th e Executive has the authority to 
issue regulations governing marketing, intermedia tion, distribution and/or production even if no 
supply emergency has been declared.  In this cont ext, the Government has made use of domestic 
market supply agreements and price agreements wi th producers in various activities and also with 
distributors.  Another instrument that is used to  maintain domestic prices is the agricultural activities 
compensation regime. WT/TPR/S/277 Trade Policy Review 
Page xiv 
  
  31. Argentina is an observer to the Plurilateral Ag reement on Government Procurement.  It uses 
the purchasing power of the State as a tool to promote and protect domestic industry, placing particular emphasis on small and medium enterprises through programmes such as Compre Trabajo 
Argentino  (Buy Argentine Labour), "buy provincial" a nd "buy municipal" which grant preferences 
ranging from 5% to 7% for domestic or local producer s as applicable.  Since 2012, Argentina has also 
been granting a preferential margin of 7% to tenders from suppliers th at export, and certain services, 
such as air transport, must use domestic suppliers. 
32. In 2007 Argentina amended its Intellectua l Property Law to exempt from payment of 
copyrights the reproduction and distribution of scienti fic and literary works in special systems for the 
blind and other people with visual disabilities.  Star ting in 2008, legislation was also introduced to 
protect collective marks.  Regulations for the prot ection of geographical indi cations and designations 
of origin for agricultural products and foodstuffs  were introduced in 2009.  That same year, a 
time-frame was established for the protection of the rights of artists whose performances are fixed on 
phonograms, as well as phonogram producers.  In 2012, Argentina adopted guidelines for patentability examination directed to chem ical/pharmaceutical patent applications. 
(5) T
RADE POLICIES BY SECTOR  
33. Argentina is a major producer of agricultural goods, especially cereal and livestock products.  
At the international level, it is striving for greater  liberalization of trade in agricultural and livestock 
products, and the agricultural negotiations are one of  its main interests in the WTO.  Argentina's 
support for the agricultural sector is generally limited :  practically all of the notified support falls 
within the Green Box, tobacco being the only excepti on.  Tariff protection for agricultural products is 
lower than for the manufacturing sector (ISIC defini tion):  it was 7.2% in 2012, as compared to an 
overall average of 11.4%.  Argentina does not mainta in any tariff quotas at the multilateral level, but 
it does have preferential tariff quotas for certain agricultural products.  Exports of agricultural 
products are subject to duties which vary from 5% to 32%. 
34. The mining sector, which is open to domestic a nd foreign private investors, enjoys a number 
of tax benefits which have been notified to the WTO.  While mining activities are coordinated by the 
Federal Government, the provinces have the authority to define their own policies and to manage their 
mining resources, as well as to levy mining royalties.  Exports of mining products are subject to export duties at a rate which generally varies from 5% to 10%.  Since May 2012, mining companies enjoying tax benefits must use domestic companies for maritime transport services. 
35. Argentina is the fourth largest producer of  crude oil in Latin America, and has the 
third largest natural gas reserves.  In order to s timulate production to fully meet the energy needs of 
the domestic industry the "Oil Plus" and "Refinin g Plus" programmes were implemented in 2008.  
The beneficiaries of these programmes receive tax credit certificates from the Energy Secretariat, granted when a company's effective production ex ceeds its base production.  Between 2008 and 2012, 
26 projects were admitted under the "Refining Pl us" programme, representing total investments 
of US$2.6 billion.  However, despite these progra mmes, Argentina's oil produ ction and exports have 
declined during the period under review.  Exports of crude oil are subject to duties which vary 
according to the international price of oil,  and can fluctuate between 25% and 45%. 
36. The provinces have control over the oil fields w ithin their territory.  As a result, two regimes 
are currently in force in the hydrocarbons sector , one involving permits and leases under federal 
jurisdiction, and the other involving contracts unde r provincial jurisdiction.  In May 2012, with 
the nationalization of the company YPF, new guiding principles were introduced for Argentina WT/TPR/S/277 
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  Argentina's hydrocarbons policy, including the promotion of joint ventures of public and private 
capital both national and international, for the ex ploration and exploitation of conventional and 
non-conventional hydrocarbons, and obtaining a surplus in the hydrocarbon trade balance. 
37. The production of natural gas has also declin ed during the period under review and most 
distributors of natural gas have had their rates fro zen since 2002.  These, coupled with an increase in 
domestic demand and the imposition of export duties on natural gas of 100%, and 45% for propane 
gas, have resulted in a change in Argentina's trade position with respect to gas:  since 2008, Argentina 
has been a net importer of natural gas. 
38. Exports as well as imports of manufactured produc ts grew rapidly during the review period, 
with import growth slightly outpacing export growth .  In 2011, exports of manufactures (including 
processed foods) totalled US$28.9 billion, approximat ely one-third of total exports, while imports 
reached US$60.4 billion.  The leading manufactures exports were automotive products (35% of the 
total), chemical and related products (20%), metal processing (11%), and precious stones and 
metals (10%).  A substantial share of exports of manufactures can be attributed to large conglomerates 
and multinational corporations, some  of which have majority foreign participation.  Many of the 
exports of manufactured products, for example, in th e automotive sector, are imported-input intensive. 
39. Argentina assists the manufacturing sector throu gh horizontal fiscal incentive schemes as well 
as export promotion schemes such as free-export zones and temporary admission.  Special arrangements also apply to the pr oduction of capital goods under the capital goods, 
information technology and telecommunications products regime.  The manufacturing sector has 
access to special credit facilities for research and development project s and technological 
development and innovation.  Border measures us ed to protect the manufacturing sector include 
tariffs, automatic and non-automatic import licensi ng and contingency measures, in particular 
anti-dumping duties.  The simple average MFN tariff rate for the manufacturing sector (ISIC definition) was 11.7% in 2012, or 11.5%  under the WTO definition of non-agricultural 
products.  During the period under review, imports  of a significant number of manufactures continued 
to be subject to non-automatic licensing, while a duty of 5% was levied on most exports of 
manufactured products. 
40. Argentina covers most of its energy need s through its own resources.  Most of the 
hydroelectric power stations are privately owned, although the two largest are State-owned.  The electricity sector is characterized by a strong fore ign presence.  Argentina is  interconnected with the 
Brazilian, Paraguayan, Uruguayan and northern Chil ean power systems and is a net exporter of 
electricity to those countries.  The policies implemented in the electricity sector aim at promoting sustainable development and encouraging the use of  renewable energies.  Under Argentine law, the 
end-user market has been divided into a regulated segment (end users) and another open to competition (large users).  In the regulated seg ment, the distributor holding the concession is 
guaranteed a monopoly and the tariffs are regulated.  The large users are free to procure electricity on 
the market. 
41. Telecommunications services in Argentina are provided on a competitive basis.  However, 
fixed telephony continues to be dominated by tw o "traditional operators", whose contracts were 
declared open for renegotiation in 2002 and whose ra tes were frozen at that time.  As of mid-2012, 
these rates have not been revised.  Operators are fr ee to set the rates of other telecommunications 
services. WT/TPR/S/277 Trade Policy Review 
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  42. Argentina's financial sector successfully over came the world financial crisis of 2008-2009, 
and its solvency level is consider ed adequate.  The degree of subscr ibed capital in 2011 was 15.5% of 
credit risk-weighted assets, 62% higher than the lega l requirement.  During the first months of 2012, 
with growth in financial interm ediation slowing down slightly, the degree of subscribed capital rose 
to 15.9%.  Argentine law does not impose any restrictions on the nationality of investors wishing to 
participate in the local financial system or on tran sactions that can be conducted by the institutions to 
which they belong.  Foreign-owned financial in stitutions operating in Argentina receive national 
treatment, while foreign insurance companies receive such treatment subject to reciprocity. 
43. Prior permission must be obtained in order to  operate on the insurance market based on the 
criteria of opportunity and desirability.  Insura nce covering risks on Argentine territory may be 
contracted only through companies established in  Argentina.  The capital market in Argentina 
revolves mainly around the Buenos Aires Securitie s Market (Merval), although there are securities 
markets operating in other cities, together repr esenting barely 1% of the Merval's turnover. 
44. Domestic air and maritime transport services (cabotage) are reserved for national companies, 
though exceptions may be allowed.  Airports are State owned, but the management of the major 
airports has been contracted out to private ente rprises or consortia.  Most ports are under private 
management, but six of them, including the por t of Buenos Aires, are still State run. 
45. In general, the practice of a profession is not regulated in Argentina.  However, there are 
regulations governing the content of curricula for diplomas corresponding to professions whose 
exercise could compromise public interest or place th e health, safety, rights, property or education of 
the population directly at risk.  As regards the suppl y of professional services, in order to exercise a 
profession in Argentina, professional qualifications obta ined abroad must be revalidated at a national 
university.  Argentina has made specific commitments regarding a number of professional services under the GATS, including legal, accounting, engineering and architectural services. 
46. The tourism sector is recognized under Argentine law as being of national interest.  In 2010 
the Ministry of Tourism was created to strengthen and extend the Government's action in the sector, 
which is eligible for general and specific incentives.