WT/TPR/S/277/Rev.1 Trade Policy Review 
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  II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. During the period under review there have b een changes to the institutional structure 
responsible for formulating and implementing trade po licy:  internal and external trade have been 
combined under a single Ministry to streamline implementation of trade policing.  In the context 
of this Review, the authorities noted that Argentin a uses trade policy as a tool  for attaining socially 
inclusive economic development goals that seek to  combine economic growth with objectives such 
as reducing unemployment and poverty. 
2. Argentina is a founder Member of the WTO and grants, as a minimum, MFN treatment 
to all its trading partners.  It is of the view th at the multilateral trade system must be strengthened 
by agreeing a working agenda cen tred on agricultural reform. 
3. Argentina, together with Brazil, Pa raguay and Uruguay, is a founding member 
of the Southern Common Market (MERCOSUR) , established in March 1991 with the ultimate 
objective of establishing a common market providi ng for the free movement of goods, services, 
capital and labour among member countries.  In Au gust 2012 the Bolivarian Republic of Venezuela 
became a State party to MERCOSUR.  As a member of MERCOSUR Argentina has signed five 
preferential agreements since 2007, of which only the agreements with India and Israel have entered 
into force for Argentina. 
4. In accordance with the legislation in force, fo reign investors may, without any need for prior 
approval, invest in economic activ ities related to the production of and trade in goods and services, 
except in the fields of fisheries, the media, ar ms and munitions, the purchase of land and real estate 
in certain areas and cabotage services.  Additiona lly some sectors, such as insurance, require 
reciprocal treatment or prior authorization based on whether it is considered opportune or desirable. 
5. Argentina implements various incentive progra mmes nationally and provincially in the aim 
of promoting national and foreign investment, competitiveness and exports, including horizontal 
and sectoral schemes to stimulate investment in  capital goods and technological innovation, promote 
the development of small and medium-sized bus inesses (SMEs) and facilitate access to credit 
at preferential or fixed rates of interest.  Some of the programmes require the purchase of domestic goods in return.  There are also incentives to encour age investment in certain sectors of the economy, 
alongside incentives that are granted according to geographical locati on and upon establishment 
in free zones. 
(2) T
RADE POLICY FORMATION AND IMPLEMENTATION  
(i) Institutional and legal framework 
6. Argentina is a federal republic comprising 23 provinces and one city governed 
by an autonomous system (the Autonomous City of Buenos Aires).1  The last constitutional reform 
was conducted in 1994.2 
                                                      
1 Article 1 of the Constitution (Law No. 24.430) and information at the Casa Rosada  Nuestro país:  
organización .  Viewed at:  http://www.presidenc ia.gov.ar/nuestro-p ais/organizacion. 
2 Online information from the InfoLEG Documentation and Information Centre.  Viewed at:  
http://infoleg.mecon.gov.ar. Argentina WT/TPR/S/277/Rev.1 
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  7. Executive power is vested in the President, who is elected by universal suffrage for a term 
of four years and can be re-elected once only.3  The President is the supreme head of the nation, head 
of the government and the chief policymaker for the general administration of the country, 
and Commander in Chief of the Armed Forces.4  He appoints the Chief of the Cabinet of Ministers, 
Ministers and the Secretary General of the President's Office.  The President concludes and signs 
international treaties5, which must then be approved by the National Congress.6 
8. Judicial power is exercised by the Supreme Court of Justice and by the lower courts 
established by Congress.7 
9. Legislative power lies in the National Congress, comprising a Chamber of Deputies 
and the Senate.  The Deputies (257)  and Senators (72) are elected by universal suffrage.  Deputies 
hold their seats for a four-year term and may be re-elected.  Senators are elected for a six-year term and may be re-elected for an indefinite period.
8  The National Congress is empowered to legislate, 
among other things, on customs matters (including  export and import duties), taxation, budgetary 
and monetary matters.  It also has powers to aw ard subsidies to the provinces to cover ordinary 
expenditure.9  The National Congress oversees the balance of the public accounts with technical 
assistance from the General Auditin g Office of the Nation (AGN).10 
10. The Chambers of Congress, the Executive and citizens may table draft laws.11  A draft law 
must be approved by the Chamber in which it orig inated before it may be debated in the other 
Chamber.  Once a draft law has been approved by both Chambers it is passed to the Executive 
for consideration.  Once approved by the Executive it is enacted as law.  If the Executive rejects part 
or all of a draft law from the Legislature, the draft law and the Executive's objections to it are returned 
to the Chamber of origin;  that Chamber debates it again and if it upholds the draft by a majority 
of two-thirds it is forwarded to the reviewing Ch amber once more.  If both Chambers support the bill 
by the two-thirds majority the bill becomes law and is forwarded to the Executive for enactment.12  
Acting on the initiative of the Chamber of Deputies the National Congress may submit a draft law to public consultation.  The law calling that cons ultation may not be vetoed.  A public vote in favour 
of the draft law confers the status of law and automatically promulgates the draft law.
13  The President 
issues the directives and regulations necessary to implem ent the country's laws, ensuring that the spirit 
of the legislation is not contravened by exemptions contained in the regulations.14 
11. The Constitution empowers the President to issue decrees on the grounds of "necessity 
or urgency" only where exceptional circumstances ha ve rendered it impossible to follow the ordinary 
                                                      
3 Articles 87, 88, 90 and 94 of the Constitution. 
4 Article 99 of the Constitution. 
5 Article 99 of the Constitution. 
6 Article 75 of the Constitution. 
7 Articles 108 and 120 of the Constitution. 
8 Articles 44-62 of the Constitution. 
9 Article 75 of the Constitution. 
10 Article 85 of the Constitution and AGN online information Viewed at:  http://www.agn.gov.ar. 
11 Articles 39 and 77 of the Constitution.  See also Law No. 24.747/1996 regulating Article 39 
of the Constitution.  Draft laws relating to constitutio nal reforms, international treaties, taxation, budget 
and penal matters cannot be tabled by popular initiative. (Article 39 of the Constitution).  
Additionally, the Chamber of Deputies has sole responsi bility for tabling laws on taxes or the recruitment 
of troops (Article 52 of the Constitution). 
12 Article 83 of the Constitution. 
13 Article 40 of the Constitution. 
14 Article 99 of the Constitution. WT/TPR/S/277/Rev.1 Trade Policy Review 
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  procedures provided for in the Constitution to endo rse laws, and where the decrees in question do not 
regulate penal, taxation or electoral matters or a rrangements governing political parties.  The decrees 
are to be decided upon by general agreement of mi nisters, who along with the Chief of the Cabinet 
of Ministers must authenticate them.15  The Chief of the Cabinet presents a decree tabled on grounds 
of necessity or urgency for consideration by the Bicameral Standing Committee, which must report on 
the validity of the decree, and submits the report to the plenary sitting of each Chamber.16  
The Chambers must give an express pronouncement on the approval or rejection of the decree tabled on grounds of "necessity or urgency".
17  In the absence of an ex press pronouncement, the decrees 
in question remain in force from the time of the report for the duration of the procedure laid down 
in the Constitution.  Since 2007 various decrees  on grounds of "necessity or urgency" have 
been issued (Table II.1). 
Table II.1  
Decrees issued on grounds of necessity or urgency, 2007-2012 
Decree No.  Date  Description  
530/2012  16.04.2012  Provides for transitional aid for YPF S.A. for 30 days to ensure the business's continuing operation, pro tect its assets 
and equity, the fuel supply and ensure the country's needs are met. 
324/2011  02.01.2012  Amends the national budget. 
2.082/2011  12.12.2011  Amends Decree No. 438/1992 (text harmonized by the Ministerial Law) on the institutional framework 
of the Ministry of External Relations, International Trade and Religion. 
1.764/2011  18.11.2011  Amends the national budget (2011). 
192/2011  25.02.2011  Dissolves the National Office for the Control of Agricultural Trade, a decentralized body under 
the Ministry of Agriculture, Livestock and Fisheries. 
2.054/2010  29.12.2010  Lays down measures supplementing the extension of the national budget (2010). 
2.052/2010  28.12.2010  Amends the national budget (2010). 
1.798/2010  24.11.2010  Amends the national budget (2010). 
919/2010  30.06.2010  Establishes the Ministry of Tourism.  Amends Ministerial Law. 
296/2010  01.03.2010  Repeals Decree No. 2.010/2009 establishing the Bicentennial Debt Relief and Stability Fund.  Declares the  bringing 
into effect of the text of Article 6 of Law No. 23.928/1991 as amended by Law No. 26.076/2012 ratifying Decree No. 1.599/2005 on the Central Bank Reserves. 
298/2010  01.03.2010  Establishes the Argentine Debt Relief Fund. 
2.010/2009  15.12.2009  Establishes the Bicentennial Debt Relief and Stability Fund.  Amends Law No. 23.928/1991 on the convert ibility 
of the austral. 
206/2009  20.03.2009  Establishes the Federal Solidarity Fund to finance works in provinces and municipalities to improve the h ealth, 
educational, hospital, housing or road infrastructure in urban or rural centres. 
1.472/2008  16.09.2008  Amends the national budget (2008). 
1.798/2007  05.12.2007  Amends Decree No. 135/2006 on the deferred payment of taxes in non-industrial projects. 
Source:  Online information from the InfoLEG Documentation and Information Centre.  Viewed at:  
http://infoleg.mecon.gov.ar. 
12. The Constitution, international treaties and the la ws of the nation constitute the "supreme law" 
in Argentina and rank highest in the legal order.18  The Constitution provides that the President 
is empowered to issue other norms:  the inst ructions and regulations necessary to implement 
the country's laws;  decrees on the grounds of "necess ity or urgency", decrees issued by the Executive 
by virtue of Article 76 of the Constitution, wh ich provides that "the power to legislate shall 
not be delegated to the Executive except in spec ific matters of administration or in a public 
emergency …".  In the hierarchy of laws, these ar e followed by the acts and regulations issued by 
the Chief of the Cabinet of Ministers as are n ecessary to exercise his powers and the resolutions 
                                                      
15 Article 99 of the Constitution. 
16 Law No. 26.122/2006, Article 10. 
17 Law No. 26.122/2006, Article 22. 
18 Articles 31 and 75 of the Constitution. Argentina WT/TPR/S/277/Rev.1 
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  issued by Ministers in respect of th e economic and administrative arrangements 
for their departments.19 
13. The Constitution recognizes the autonomy of the provinces and the 
Autonomous City of Buenos Aires.  Each province has its own constitution20;  the power to establish 
its own institutions and to elect its governors, legislators and other provincial officials without 
intervention from the Federal Government.21  The Autonomous City of Buenos Aires has 
an autonomous system of government with its own legislative and judicial powers, and its head 
of government is directly elected by the city's inhabitants.22  The provinces cannot exercise the powers 
conferred upon the nation by the Constitution (Table II.2).23 
Table II.2  
Powers of the Federal Government 
Conclude partial political treaties 
Issue laws on trade or navigation, whether internal or external 
Establish provincial customs offices 
Coin money 
Establish banks with the power to issue notes without authorization from the Federal Congress 
Issue the Civil, Commercial, Penal and Mining Code, following approval by Congress 
Issue laws on citizenship and naturalization, bankr uptcy, counterfeiting of money or State documents 
Establish tonnage duties 
Fit out warships or raise armiesa 
Appoint or receive foreign agents 
a The provinces may commission warships or raise armies in the ev ent of foreign invasion or a threat so imminent that there can  be 
no delay;  they must report the situation to the Federal Government after the event.  
Source:  Article 126 of the Constitution.  
14. The powers conferred upon the provinces include the authority to establish economic 
development regions, promote and establish new i ndustries, administer their natural resources 
and import foreign capital24, and to impose indirect taxes "as a concurrent power" with Congress.  
The Constitution provides for the establishment of a revenue-sharing arrangement to redistribute most 
indirect taxes and certain direct taxes approved by Congress.25  Certain national taxes such as import 
or export duties are excluded fro m the revenue-sharing arrangement26;  there is another distribution 
mechanism for these taxes.27 
                                                      
19 Articles 100 and 103 of the Constitution. 
20 Articles 5 and 123 of the Constitution. 
21 Article 122 of the Constitution. 
22 Article 129 of the Constitution. 
23 Article 126 of the Constitution. 
24 Articles 124 and 125 of the Constitution. 
25 Article 75 of the Constitution. 
26 For further information see Article 2 of Law No. 23.458/1988 and online information from 
the Parliamentary Training Institute, Diccionario de Términos Parlamentarios:  Coparticipación Federal 
de Impuestos .  Viewed at:  http://www1.hcdn.gov.a r/dependencias/icap/CopFedDicc.asp. 
27 Online information from the Ministry of the Economy and Public Finance Destino de 
la Recaudación de los Impuestos  al 30 de junio de 2012 .  Viewed at:  
http://www.mecon.gov.ar/si p/dniaf/destino_recaud.pdf. WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 26 
  
  15. The provinces may also, with the knowledge of Congress, conclude international agreements 
insofar as they are not incompatible with the country's foreign policy and do not infringe upon the powers delegated to the Fede ral Government or affect the public credit of the nation.  
The Autonomous City of Buenos Aires has its own regime for concluding international agreements.
28 
(ii) Trade policy formulation and objectives 
16. During the period of this Review, there have  been several changes to the institutional 
structure responsible for formulating and implem enting trade policy, which are the responsibility 
of the Ministry of the Economy and Public Finan ce (MEFP) and the Ministry of External Relations 
and Worship (MREC).29  The Undersecretariat for Foreign Trade was established at the MEFP 
in 2011, combining the foreign- trade-related responsibilities within a single Ministry to make 
implementation of trade policy more flexible.  Prev iously these had been attached to three different 
Ministries (MECON, MREC and the Ministry of Industry).  Since 2011, the MREC has been responsible for regional, bilateral and multilateral negotiations on exte rnal trade.  When formulating 
external trade policy these Ministries consult with va rious public sector entities involved in the area as 
well as with representatives of the private sector and civil society.  The Ministry of Agriculture, 
Livestock and Fisheries and the Ministry of  Tourism were established in 2009 and 2010 
respectively (Table II.3). 
Table II.3  
Ministries involved in the formulation a nd/or implementation of trade policy  
Body  Trade policy functions  
Ministries with primary responsibility for formulating trade policy
Ministry of the Economy and Public 
Finance   
Secretariat for Domestic Trade  Draft domestic trade policy and national economic and trade integration processes. 
Undersecretariat for Domestic Tradea Implement policy on domestic trade, consumer protection and competition protection.  Oversee 
the National Commission for the Defence of Competition.  
Secretariat for Foreign Tradea Its prime responsibility is to propose and define trade policy at regional and multilateral levels.  
Draw up the tariff structure and policy on refunds and drawback for export.  Oversee the National 
Commission on Foreign Trade Intervene in trade promotion policy. 
Undersecretariat for Foreign Trade and 
International Relationsa Implement trade policy.  Participate in the design of policy on national investment and foreign direct 
investment Act as a single window for foreign investors.  
Ministry of External Relations and 
Worship   
Secretariat for International Economic 
Relations (MREyC)a Take part in international trade negotiations.  Take part in policies on external trade 
and internationalization of Argentine businesses abroad. 
Undersecretariat for Latin American Economic Integration and MERCOSUR
a  Take part in bilateral and multilateral economic negotiations with Latin America, the Caribbean 
and MERCOSUR. 
Undersecretariat for International 
Economic Negotiationsa Participate in bilateral and multilateral economic negotiations with the rest of the world.  
Undersecretariat for Investment 
Development and Trade Promotiona Formulate and implement policy and instruments to promote foreign investment.  Act as a single 
window for foreign investors. 
Other ministries that may be involved in trade policy  
Ministry of Industryb  
Secretariat for Small and Medium-Sized 
Enterprises and Regional Development  Draw up policies to develop, consolidate and promote SMEs.  Provide financial assistance 
and facilitate access to credit for SMEs.  
Secretariat of Industrya Draw up industrial policy.  Take part in designing the tariff structure and policy on support for exports 
(refunds and drawback).  Assist the Ministry in the supervision of measures taken by the National 
Institute of Intellectual Property.  
Undersecretariat for Industry Participate in drafting industrial policy and regional and international negotiations in the auto motive 
sector. 
                                                      
28 Article 124 of the Constitution. 
29 The Ministry of External Relations and (MREC) was formerly known as the Ministry of External 
Relations, International Trade and Worship (Decree Nos. 2.082/2011 and 2.085/2011). Argentina WT/TPR/S/277/Rev.1 
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  Body  Trade policy functions  
Secretariat for Industrial Strategic 
Planning Control and implement sectoral strategic plans.  Develop tools to promote industry Implement 
industrial policy in line with the Industrial Strategy Plan 20-20.  
Undersecretariat for Industrial Strategic Planning Review the objectives and outcomes of the Industrial Strategy Plan 20-20.  Define policy on industrial 
parks.  Analyse the competitiveness of local industry and propose policies to promote and improve it. 
Ministry of Federal Planning, Public Investment and Services  Draw up public investment promotion and protection systems.  Take part in drawing up tariff 
structures.  Participate in the drawing up of mining, energy, rural electrification and communications 
policies Participate in drawing up and enforcing fuel regulations and the setting of fuel prices.  
Ministry of Agriculture, Livestock and 
Fisheriesb Determine and implement policy on agriculture, livestock and fisheries.  Take part in drawing up tariff 
structures, drawing up and implementing policy on refunds and drawback for export, and trade policy. 
Ministry of Tourismc Determine policy on tourism.  Promote and develop tourism-related products. 
a Established in 2011. 
b Established in 2009. 
c Established in 2010. 
Source:  Law No. 22,520 (Ministerial Law, harmonized by D ecree No. 438/92) and Decree No. 357/02 (organizational 
framework of the National Government). 
17. Argentina uses trade policy as a tool for attain ing socially inclusive economic development 
goals.  Export promotion continues to be one of the principal objectives of Argentina's trade policy, 
alongside promotion of domestic production (inc luding import substitution), investment promotion 
and employment generation.  The authorities have i ndicated that Argentina's trade policy is based 
on WTO principles and disciplines.  Argentina is in  favour of strengthening the multilateral system, 
and its trade policy therefore combines a multilate ral approach with regional integration processes 
and bilateral trade agreements to  expand and facilitate trade. 
(3) INTERNATIONAL TRADE RELATIONS  
(i) WTO 
18. Argentina is a founder Member of the WTO and grants, as a minimum, MFN treatment to all 
its trading partners.30  It is an observer in the Committee on Trade in Civil Aircraft and the Committee 
on Government Procurement.  Argentina made specific commitments in the WTO negotiations on telecommunications and has ratified the Fourth Prot ocol.  It also participated in the financial 
services negotiations but neither made any offe rs nor undertook new commitments, and therefore 
is not one of the signatories to the Fifth Protocol. 
19. In accordance with its statement at the Minist erial Conference in Geneva in December 2011, 
Argentina is of the view that the multilateral trading system must be strengthened, since the importance and centrality of the WTO go far beyond the negotiating round.  Nonetheless, 
in facing up to future work within the WTO, Argen tina believes that a working agenda must be agreed 
with a view to creating a level playing field in trade and making it more equitable for the interests 
of all Members, while retaining agricultural reform  as the lynchpin.  Fulfilment of the Doha mandate 
with regard to agriculture is essential for developing countries.
31 
20. In the context of this Review, the Argen tine authorities indicated that the country's 
multilateral trade policy is based on the fulfilment a nd consistent implementation of the commitments 
undertaken during the Uruguay Round;  active pa rticipation in the various WTO forums;  
commitment to the Trade Review Policy Mechan ism;  the notifications process as a method 
                                                      
30 Information provided by the authorities. 
31 WTO document WT/MIN(11)/S T/19 of 16 December 2011. WT/TPR/S/277/Rev.1 Trade Policy Review 
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  of maintaining transparency;  and recognition of  the Dispute Settlement Mechanism as a means of 
settling disputes and increasing predictability. 
21. In line with the commitments it has undertak en since the last Review, Argentina has 
continued to submit notifications to the WTO during the period of the Review (Table II.4). 
Table II.4  
Principal notifications to the WTO, 1 January 2007–30 October 2012 
Agreement  Requirement  Frequency  WTO document date (latest document if 
submitted regularly)  
Agreement on Agriculture  
Articles 10 and 18.2 
(ES:1 and ES:2) Export subsidies  Annual G/AG/N/ARG/29 (27 April 2010) 
Article 18.2 (DS:1) Domestic support  Annual G/AG/N/ARG/30 (18 October 2010) 
GATT 1994  
Article XVII:4(a) 
(State trading) State trading enterprises Annual  G/STR/N/13/ARG, G/STR/N/14/ARG 
(15 February 2012)  
Article XXVIII:3 Modification of Schedules (withdrawal 
of concessions as a means of retaliation) Ad hoc  G/SECRET/20/Add.6 (11 January 2007) 
Article XXVIII:5 Modification of Schedules 
(reservation of the right to modify schedules for a period of three years) On a three-year 
basis  G/MA/248 (22 September 2011) 
Enabling clause 
(integration) Preferential Trade Agreement between developing 
countries:  MERCOSUR and India  Ad hoc  WT/COMTD/N/31 (25 February 2010) 
QR (G/L/59) Quantitative restrictions Bi ennial G/MA/NTM/QR/1/Add.12 (3 May 2011) 
GATT concessions 
(Addendum to 
L/6905) Changes in the 1996 Harmonized Syst em Ad hoc  G/SECRET/HS96/30/Add.1 
(28 February 2011) 
Agreement on Implementation of Article VI of the GATT 1994 (anti-dumping)
Article 16.4  Anti-dumping actions (preliminary and fina l) Ad hoc  G/ADP/N/152 (19 January 2007) 
G/ADP/N/234 (16 October 2012) 
Article 16.4 Anti-dumping actions  (taken during the preceding 
six months) Semi-annual  G/ADP/N/230/ARG (4 October 2012) 
Article 18.5 Laws/Regulations as ame nded Ad hoc  G/ADP/N/1/ARG/1/Suppl.9, 
G/SCM/N/1/ARG/1/Suppl.8 
(22 September 2008) 
Agreement on Import Licensing Procedures 
Article 1.4(a) Copies of publications setting out the rules 
and information relevant for the purposes 
of the Agreement Once only, 
subsequently 
notification of changes G/LIC/N/1/ARG/3 (17 September 2009)  
Article 5.1, 5.2, 5.3 Import Licensing Procedures and changes thereto Ad hoc  G/LIC/N/2/ARG/11 (29 May 2007) 
G/LIC/N/2/ARG/4/Add.1/Rev.1/Suppl.1 (24 October 2012) 
Article 7.3 Replies to questionnaire Annual  G/LIC/N/3/ARG/9 (24 April 2012) 
Article 8.2(b) Changes in laws/regulations and administrative 
procedures Once only, 
subsequently 
notification of 
changes G/LIC/N/1/ARG/4 (14 April 2011) 
Agreement on the Application of Sanitary and Phytosanitary Measures
Article 7, Annex B Sanitary/phytosanitary me asures Ad hoc  G/SPS/N/ARG/103 (3 January 2007) 
G/SPS/N/ARG/160 (27 September 2007) 
Agreement on Technical Barriers to Trade  
Article 2.10 Technical regulations (u rgent) Ad hoc  G/TBT/N/ARG/179/Add.1 
(18 September 2008) 
G/TBT/N/ARG/186/Add.1 (5 April 2012) 
Article 2.9 Technical regulations Ad hoc  G/TBT/N/ARG/207 (10 January 2007) 
G/TBT/N/ARG/277 (30 October 2012) 
Articles 2.9 and 5.6 Technical regul ations;  conformity assessment 
procedures Ad hoc  G/TBT/N/ARG/208 (24 January 2007) 
G/TBT/N/ARG/260 (30 March 2011) Argentina WT/TPR/S/277/Rev.1 
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  Agreement  Requirement  Frequency  WTO document date (latest document if 
submitted regularly)  
Article 5.6 Conformity assessment procedures Ad hoc  G/TBT/N/ARG/213 (20 April 2007) 
G/TBT/N/ARG/259 (30 June 2010) 
Article 5.7 Conformity assessment procedures  (urgent) Ad hoc  G/TBT/Notif.99/498/Add.3 
(20 March 2007) 
G/TBT/Notif.99/498/Add.9 (8 December 2011) 
Agreement on Safeguards  
Article 12.1(b)  Safeguard measures in the event of a finding 
of serious injury or  threat thereof  Ad hoc  G/SG/N/10/ARG/5, G/SG/N/11/ARG/5, 
G/SG/N/8/ARG/5 (26 April 2007) 
G/SG/N/10/ARG/5/Suppl.2, 
G/SG/N/11/ARG/5/Suppl.2, G/SG/N/8/ARG/5/Suppl.2 
(26 November 2008) Article 12.1(c) Safeguard measur es when a decision is taken 
to apply or extend a safeguard measure  Ad hoc  
Article 9.1, footnote 2 Non-applica tion of safeguard measures against 
products originating in a developing country  Ad hoc  G/SG/N/10/ARG/5, G/SG/N/11/ARG/5, 
G/SG/N/8/ARG/5 (26 April 2007) 
G/SG/N/11/ARG/5/Suppl.3 (12 May 2009) 
Agreement on Subsidies a nd Countervailing Measures
Article 25.1 
GATT Article XVI.1 Subsidies Annual  G/SCM/N/220/ARG (10 February 2012) 
Article 25.11 Countervailing measures (preliminary and final)  Ad hoc  G/SCM/N/152 (24 January 2007) 
Article 25.11  Countervailing measures (adopted during 
the preceding six months) Semi-annual  G/SCM/N/242/ Add.1 (12 October 2012) 
Article 32.6 Laws/regulations and changes thereto   Once only, 
subsequently 
notification of changes G/ADP/N/1/ARG/1/Suppl.9, 
G/SCM/N/1/ARG/1/Suppl.8 
(22 September 2008) 
Source : WTO Secretariat. 
22. During the period of this Review, Argentin a has participated in 34 disputes at the 
WTO Dispute Settlement Body, acting as complainant in four cases, respondent in five cases and as 
third party in the remaining cases (Table II.5). 
Table II.5  
Status of dispute-related WTO matters involving Argentina, 1 January 2007-19 October 2012  
Case  Complainant/ 
respondent  Date of receipt of 
request for 
consultations Status at 19 October 2012  WTO 
document 
series  
Argentina as complainant      
Anti-dumping measures on imports 
of wheat flour from Argentina Argentina/Chile 14 May 2009 In consultations (14 May 2009) WT/DS393 
Certain measures concerning 
the importation of biodiesels Argentina/EU and Spain 17 August 2012 In consultations (17 August 2012) WT/DS443 
Measures affecting the importation 
of animals, meat and other animal 
products from Argentina  Argentina/United States 30 August 2012 In consultations (30 August 2012) WT/DS447 
Measures affecting the importation 
of fresh lemons  Argentina/United States 3 September 2012  In consultations (3 September 2012) WT/DS448 
Argentina as respondent      
Anti-dumping duties on fasteners 
and chains from Peru  Peru/Argentina 19 May 2010 In consultations (19 May 2010) WT/DS410 
Measures affecting the importation 
of goods  EU/Argentina 25 May 2012 In consultations (25 May 2012) WT/DS438 
Measures affecting the importation 
of goods  United States/Argentina 21 August 2012 In consultations (21 August 2012) WT/DS444 
Japan/Argentina 21 August 2012 In consultations(21 August 2012) WT/DS445 
Mexico/Argentina 24 August 2012 In consultations (24 August 2012) WT/DS446 WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 30 
  
  Case  Complainant/ 
respondent  Date of receipt of 
request for 
consultations Status at 19 October 2012  WTO 
document 
series  
Argentina as third party      
Subsidies and other domestic support 
for corn and other agricultural products Canada/United States 8 January 2007 Panel established, but not yet 
composed (17 December 2007) WT/DS357 
Certain measures granting refunds, 
reductions or exemptions from taxes and other payments  United States/China 2 February 2007 Settled or terminated (withdrawn, 
mutually agreed solution) (7 February 2008) WT/DS358 
Mexico/China 26 February 2007 WT/DS359 
Measures affecting the protection 
and enforcement of intellectual 
property rights  United States/China 10 April 2007 Implementation notified by 
respondent (19 March 2010) WT/DS362 
Domestic support and export credit 
guarantees for agricultural products Brazil/United States 11 July 2007 Panel established, but not yet 
composed (17 December 2007) WT/DS365 
Certain measures prohibiting 
the importation and marketing of seal products  Canada/EU
a b 25 September 2007 Panel established, but not yet 
composed (25 March 2011) WT/DS369 
Definitive anti-dumping 
and countervailing duties on certain products from China  China/United States 19 September 2008 Implementation notified by 
respondent (31 August 2012) WT/DS379 
Measures concerning the importation, 
marketing and sale of tuna and tuna 
products  Mexico/United States 24 August 2008 Report(s) adopted, with 
recommendation to bring measure(s) 
into conformity (13 June 2012)  WT/DS381 
Anti-dumping administrative reviews 
and other measures related to imports 
of certain orange juice from Brazil  Brazil/United States 27 November 2008 Report(s) adopted, with 
recommendation to bring measure(s) 
into conformity (17 June 2011) WT/DS382 
Anti-dumping measures on 
polyethylene retail carrier bags from Thailand  Thailand/United States 26 November 2008 Implementation notified by 
respondent (31 August 2010) WT/DS383 
Certain country of origin labelling 
(COOL) requirements Canada/United States 1 December 2008 Report(s) adopted, with 
recommendation to bring measure(s) into conformity (23 July 2012) WT/DS384 
Mexico/United States 17 December 2008 WT/DS386 
Measures affecting the importation 
of bovine meat and meat products from Canada  Canada, Korea, Rep. of  9 April 2009 Settled or terminated (withdrawn, 
mutually agreed solution) (20 June 2012)  WT/DS391 
Measures related to the exportation 
of various raw materials  United States/China 23 June 2009 Report(s) adopted, with 
recommendation to bring measure(s) 
into conformity (22 February 2012) WT/DS394 
EUa/China 23 June 2009 WT/DS395 
Mexico/China 21 August 2009 WT/DS398 
Measures prohibiting the importation 
and marketing of seal products  Canada/EUa 2 November 2009 Panel composed (4 October 2012) WT/DS400 
Norway/EUa 5 November 2009 WT/DS401 
Countervailing and anti-dumping 
duties on grain oriented flat-rolled electrical steel from the United States  United States/China 15 September 2010 Circulation of Appellate Body report 
(18 October 2012) WT/DS414 
Measures affecting the importation 
and internal sale of goods (environmental charge) Ukraine/Moldova  17 February 2011 Panel established, but not yet 
composed (17 June 2011) WT/DS421 
Measures concerning the importation 
of certain agricultural products from the United States United States/India 6 March 2012 Panel established, but not yet 
composed (25 June 2012) WT/DS430 
Measures related to the exportation 
of rare earths, tungsten and 
molybdenum United States/China 13 March 2012 Panel composed (24 October 2012) WT/DS431 
EU/China 13 March 2012 WT/DS432 
Japan/China 13 March 2012 WT/DS433 
Certain measures concerning 
trademarks and other plain packaging requirements applicable to tobacco 
products and packaging  Ukraine/Australia 13 March 2012 Panel established, but not yet 
composed (28 September 2012) WT/DS434  
a Previously the Eu ropean Communities. 
b The measures are national measures taken by Belgium and Netherlands, not Community measures. 
Source : WTO Secretariat. Argentina WT/TPR/S/277/Rev.1 
 Page 31 
 
 
  (ii) Regional agreements32 
23. Argentina, together with Brazil, Pa raguay and Uruguay, is a founding member 
of MERCOSUR, established in March 1991 by the Treaty of Asunción, with the ultimate objective 
of establishing a common market providing for the free movement of goods, services, capital 
and labour among member countries.33  The Additional Protocol to the Treaty of Asunción 
on the Institutional Structure of MERCOSUR (Ouro Preto Protocol), signed in 1994, 
gave MERCOSUR legal pe rsonality under international law.  In June 2012 Paraguay's right 
to participate in MERCOSUR orga ns and discussions was suspended.34  A press release 
from the Ministry of Foreign Affairs of Pa raguay states that:  "Despite referring expressly 
to the Protocol of Ushuaia on Democratic Co mmitment within MERCOSUR, that decision was 
adopted in breach of Article 4 of that Protocol, whic h requires relevant consulta tions to be held with 
the State concerned;  this did not occur in resp ect of the Republic of Paraguay.  On that ground 
the decision is not only illegal but also ille gitimate and in violation of due process."35 
24. The Bolivarian Republic of Venezuela signed its  Protocol of Accession with the original 
four MERCOSUR members in July 2006;  in June 2012, the Heads of State of the MERCOSUR 
member countries, except Paraguay, signed a Declaration on the Incorporation of the Bolivarian 
Republic of Venezuela into MERCOSUR.36  The Bolivarian Republic of Venezuela deposited 
its instrument of ratification to the Protocol on Accession to MERCOSUR on 13 July 2012.  Meeting 
in Brasilia on 30 July 2012, the Council of th e Common Market (CMC) decided that as from 
12 August 2012 the Bolivarian Republic of Venezuel a would acquire the status of State Party 
and would participate in MERCOSUR with all rights and obligations. 
25. The Treaty of Asunción provides for the free movement of goods among member countries, 
with a timetable for achieving this under the Trad e Liberalization Programme.  Since 1 January 2000, 
goods other than those in the sugar and automo tive sectors have moved freely within MERCOSUR 
if they have a MERCOSUR certificate of origin.  Specific deadlines for integrating the sugar sector 
into common trade policy have not yet been set.  CMC Decision No. 56/10 provided that 
the MERCOSUR common automotive policy should be  in force by 1 January 2013 at the latest. 
26. The MERCOSUR Common External Tariff (CET) h as been in force since January 1995;  
some exemptions are allowed under various CMC decisions.  Nevertheless, Decision CMC No. 56/10 
(on convergence towards the customs union) establis hed an ad hoc group to examine the consistency 
and dispersion of the entire structure of the CET and to present a proposal for revision of the CET 
to the Common Market Group in 2014. 
27. MERCOSUR has an agreement on the elimination of double charging of the CET 
and the distribution of customs revenue within MERCOSUR.37  The aim is to achieve the free 
                                                      
32 This section is based on WTO (2012). 
33 The provisions in the Treaty of Asunción were incorporated in the LAIA's legal structure under 
Economic Complementarity Agreement No. 18. 
34 Decision on the suspension of Paraguay within MERCOSUR pursuant to the Protocol of Ushuaia on 
Democratic Commitment.  Viewed at:  http://www.m ercosur.int/innovaportal/f ile/4496/1/ver_adjunto.pdf. 
35 Ministry of External Relations of Paraguay , Press Release, "Communiqué on the MERCOSUR 
Decision in respect of Paraguay".  Viewed at:  http://www.mre.gov.py/v1/Noticias/74-comunicado-sobre-la-
decisin-del-mercosur-sobre-paraguay.aspx. 
36 Declaration on the Incorporation of the Boliv arian Republic of Ven ezuela into MERCOSUR.  
Viewed at:  http://www.mercosur.in t/innovaportal/file/4501/1/vzl.pdf. 
37 MERCOSUR Decision CMC No. 54/04. WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 32 
  
  movement of goods and eliminate the double charging  of CET duties, and it was to be implemented 
in three stages.38  The first stage concerns recognition of goods with a 0% CET rating in all 
the member countries and with a 100% tariff prefer ence within the framewo rk of the agreements 
concluded by MERCOSUR with third parties.  The second stage was expected to cover all the other 
goods subject to the CET;  implementation was planned for the entry into force 
of the MERCOSUR Customs Code, which was signed in 2010 but has yet to enter into force.39  
The third stage, full implementation of the pro cess, will require the establishment of a mechanism 
for the distribution of customs revenue and th e interconnection of the computerized customs 
management systems of the various member States  and the establishment of the Regional Registers 
of Offenders Database (RIM). 
28. The Protocol of Montevideo on Trade in Se rvices in the MERCOSUR was signed in 1997 
with the aim of liberalizing services over a period of 10 years.  The Protocol has been ratified by Argentina, Brazil and Uruguay and entered into force on 7 December 2005.  The Protocol is of indefinite duration;  it establishes a pr ogramme to liberalize trade in services within 
the Common Market by December 2015.
40 
29. Since 2007 Argentina has signed five preferentia l agreements as a member of MERCOSUR, 
of which only two have entered into force for Argentina (Table II.6). 
Table II.6  
Preferential agreements in force and/or si gned between 1 January 2007 and 19 October 2012  
 
Signature  Duration  Scope  
Final year of 
tariff 
reduction  Tariff lines  
Goods ServicesExcluded 
(number)  Coverage  
(% of total)  
2012  End of the 
reduction 
period  
Trade agreements 
that have entered into force since 
1 January 2007         
MERCOSUR -India 
preferential trade 
agreementb 25 January 2004 1 June 2009 Yes No n.a.a 9,378 4.6 n.a.b 
MERCOSUR -Israel 
free trade agreement 18 December 2007 9 September 2011 Yes No 2019 408 95.8 95.8 
Trade agreements 
signed since 
1 January 2007         
MERCOSUR -
Southern African 
Customs Union 
(SACU) preferential trade agreement 15 December 2008 Pending Yes No n.a.
a 8,780 10.7 n.a.b 
                                                      
38 MERCOSUR Decision CMC No. 10/10. 
39 MERCOSUR Decision CMC No. 27/10 an d MERCOSUR Decision CMC No. 34/11. 
40 For further information on the commitments entered into by Argentina see the Protocol 
of Montevideo on Trade in Services in the MERCOSUR, Seventh Round of Negotiations on Specific Services Related Commitments:  Schedule of sp ecific commitments.  Viewed at:  
http://www.aladi.org/nsfaladi/nuevostemas.nsf/2c617e60b2a993cb032574920060b614/51071885d11687c10325
768e006039d2?OpenDocument. Argentina WT/TPR/S/277/Rev.1 
 Page 33 
 
 
   
Signature  Duration  Scope  
Final year of 
tariff 
reduction  Tariff lines  
Goods ServicesExcluded 
(number)  Coverage  
(% of total)  
2012  End of the 
reduction 
period  
MERCOSUR -Egypt 
FTA 2 August 2010 Pending Yes No 10 yearsc 197 98 98 
MERCOSUR -State 
of Palestine FTA 20 December 2011 Pending Yes No 10 yearsc 408 95.8 95.8 
n.a. Not applicable. 
a Not relevant because the agreement in  question concerns fixed preferences. 
b Notified to the WTO (WTO document WT/COMTD/N/31 of 23 February 2010). 
c Since entry into force. 
Source: Online information from the Undersecretar iat of Trade Policy and Management, Dirección Nacional de Política 
Comercial Externa:  Política Comercial Regional .  Viewed at:  http://www.co mercio.gov.ar/web/index.php? 
pag=334&btn=161.  Online informa tion from the MERCOSUR Secretariat Tratados, Protocolos y Acuerdos .  
Viewed at:  http://www.mercosur.int/t_generic.jsp? contentid=2639&site=1&channel= secretaria;  additional 
information supplied by the Argentine authorities. 
30. Within the framework of the Latin American  Integration Association (LAIA), Argentina 
has partial-scope economic complementarity agreem ents with Brazil (ECA No. 14), Mexico (ECA 
No. 6), Paraguay (ECA No. 13) and Uruguay (E CA No. 57).  The agreements with Brazil 
and Uruguay were amended during the period of this Review.  In 2010 the original agreement of 1990 
between Brazil and Argentina was supplemented by the Thirty-Ninth Additional Protocol 
on the Common Automotive Policy between Argen tina and Brazil.  In 2008 the agreement with 
Uruguay was supplemented by a Protocol updating the quotas for the automotive sector 
(Chapter IV(4).41  Implementation of Economic Complementarity Agreement No. 55/02, including 
the Annexes thereto and Bilateral Appendix I on Tr ade in the Automotive Sector between Argentina 
and Mexico, was suspended in 2012 for a period of three years (Chapter IV(4)).42 
31. Argentina is eligible for the Generalized  System of Preferences (GSP) of Belarus 
(WTO Observer), Canada, the European Union, Japan, New Zealand, Norway, 
the Russian Federation, and Turkey.43  Argentina was eligible fo r the GSP of the United States 
until March 2012. 
32. At multilateral level, as part of MERCOSUR Argentina is a signatory to the Global System 
of Trade Preferences among Developing Countries (GSTP).44 
                                                      
41 Online information from LAIA, Integración y Comercio:  Acuerdos:  Disposiciones 
de Internalización, Sumarios y Textos:  Acuerdos Actuales.   Viewed at:  
http://www.aladi.org/nsfaladi/text acdos.nsf/vpaises/argentina. 
42 Decree No. 969/2012. 
43 UNCTAD (2011). 
44 Agreement on the Global System of Trade Preferences among Developing Countries 
of 12 April 1988.  Viewed at:  http://unctad.org/en/docs/ditcmisc57_en.pdf.  See also Law No. 26.083/06 
approving the Protocol for the Accession of the Southern Common Market (MERCOSUR) to the Agreement on 
the Global System of Trade Preferences among Developing Countries (GSTP). WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 34 
  
  (4) INVESTMENT REGIME  
(i) General investment framework 
33. Argentina's foreign investment regime is governed by a number of norms including 
the Foreign Investment Law (Law No. 21.3 82) as amended;  Decree No. 1.853/93;  
Economic Emergency Law No. 23.69745;  Law No. 22.561 on Public Emergency and Exchange 
Regime Reform46;  Decree No. 616/2005;  and Communications of the Central Bank of 
the Argentine Republic.  These norms regulate fore ign direct investment (FDI) as such as well 
as the registration of foreign companies, monetary  policy, the regime governing currency exchange 
and transfers that also have a bearing on FDI.  U nder Law No. 21.382 foreign investors have the same 
rights and obligations as those afforded by the Cons titution and laws to national investors;  foreign 
investors are therefore eligible for promotional or  other special regimes provided for in the various 
laws.47  Argentina grants national treatment to foreign investment.48  Under the Constitution, property 
is inviolable and expropriation for reasons affected with a "public purpose" may be authorized by law 
subject to compensation.49 
34. The foreign investment regime in Argentina covers  foreign direct investment (FDI) by way of   
capital, real estate and portfolio investment. 
35. Until 2010 the task of formulating and implemen ting foreign investment policy was a matter 
for the National Investment Development Agency (ANDI), a decentralized body under the former 
Ministry of the Economy and Production.50  The ANDI was dissolved in 2010 and responsibility 
for foreign investment policy was transferred to the Undersecretariat for Investment Development 
and Trade Promotion in the Ministry of External Relations and Worship.51  The Undersecretariat 
provides assistance to potential investors at all stages of the investment process.  Argentina also has 
various provincial investment promotion bodies to advise investors. 
36. Foreigners can invest without the need for pr ior approval in activities in industry, mining, 
agriculture, finance, services or other sectors asso ciated with production of and trade in goods 
and services.52  In practice, there are no restrictions on entry by foreigners to the various sectors 
and the principle of national treatment applies to fo reign capital.  Nevertheless, in order to operate 
in some sectors reciprocal treatment, or pr ior authorization depending on opportuneness 
and desirability (insurance market), are required (Chapter IV(6)(iii)(d)). 
37. The Reporting System for Direct Investment at Home and Abroad was implemented in 2004.  
Non-residents' direct investments in Argentina mu st be recorded in the System where the value 
of their holdings in the country is equal to or great er than the equivalent of US$500,000 and must be 
declared in respect of the end of each six-month cal endar period.  Additionall y, the regime governing 
                                                      
45 Article 16 of Law No. 23.697 of 1989 (the Economic Emergency Law) empowers the Executive 
to issue such regulations as may be necessary to fac ilitate the repatriation of profits on foreign investment. 
46 Article 2 of Law No. 25.561 of 2002 empowers the Executive to provide for the system determining 
the exchange rate between the Argentine peso and foreign currencies, and to issue regulations for the regime 
governing currency exchange. 
47 Law No. 21.382. 
48 Decree No. 1.853/1993 approving the harmonized text of Law No. 21.382, Articles 1 and 2. 
49 Article 17 of the Constitution. 
50 Decree No. 1.225/2006. 
51 Decree No. 1.187/2010. 
52 Decree No. 1.853/93. Argentina WT/TPR/S/277/Rev.1 
 Page 35 
 
 
  the inflow and outflow of foreign currency for the Argentine currency exchange market requires 
foreign investment to be declared for statistical purposes to the Central Bank;  invested capital must 
remain in the country for at least one year prior to being remitted abroad.53 
38. Portfolio investors must lodge a deposit in US dollars for a sum equivalent to 30% 
of the amount of the investment.  The deposit does not  bear interest and must remain at the Central 
Bank for a period of one year, after which time the f unds are released and may be transferred abroad.  
This requirement only applies to persons making an  FDI where:  (i) the debt between companies 
is entered into abroad54 and (ii) the deed transferring ownership to a non-resident is not executed 
at the same time as the sale of foreign excha nge on the unified free foreign exchange market.55 
39. Foreign investors may set up a business in Ar gentina as provided for by law;  they may 
establish a branch office, participate in an  existing company or set up a new company.56  A branch 
of a foreign company is an office opened by a fore ign company in Argentina.  In terms of equity 
the branch is accountable for the capital of its  parent and not only for the capital allocated 
by the parent company to the branch established in  Argentina.  Branches of foreign companies must 
be entered in the Public Trade Register appropriate to their registered office.   Branches may carry out 
the same activities as their parents.  Investors may also establish a new company or participate 
in an existing one.  The Law on Commercial Co mpanies (LSC) provides for a number of types 
of corporation, of which the most frequently used  by foreign investors in Argentina are public limited 
companies (SA) and limited liability companies (SRL).   In contrast to a branch, these two types of 
corporation are in principle accountable only for the capital of the company established or the 
company in which shares are held.57 
40. Local foreign-capital businesses have the sa me rights to access domestic credit as local 
domestic-capital businesses, and on the same terms.58 
41. The Investment Law (Law No. 21.382) guarantees  foreign investors the right at any time 
to repatriate their investment and transfer abro ad the liquid profits they have made.  Since 2001 
Argentina has, however, imposed several require ments on the purchase and transfer of foreign 
currency.  These controls have become a key asp ect of current economic policy and are used to 
increase reserves, manage the exchange rate, limit foreign-currency liabilities in the private sector, 
and prevent capital flight.  The Argentine authorities have stated that the current rules do not place 
restrictions on remittance abroad provided that a number of requirements confirming the genuine 
nature of the transfer are complied with.  They have  further stated that "the controls governing such 
transactions have become a key aspect of current  economic policy to prevent capital flight based 
on figures that do not tally with actual transactions". 
                                                      
53 Decree No. 616/2005, Article 1 and Article 4 
54 Excluding debt used to purchase non-financial assets that is repaid in a period of more than 
two years. 
55 Ministry of External Relations, In ternational Trade and Worship (2010). 
56 Harmonized text of Law No. 21.382/1993, Annex I to Decree No. 1.853/1993, Article 6 
and Article 7. 
57 Online information from Invest in Argentina Guía del Inversor :  Aspectos legales relativos a la IED .  
Viewed at:  http://www.inversiones.gov.ar/es/prospera r-guia-del-inversor/aspectos-legales-relativas-a-la-
ied.html. 
58 Harmonized text of Law No. 21.382/1993, Annex I to Decree No. 1.853/1993, Article 6 
and Article 7. WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 36 
  
  42. Argentina authorizes the payment abroad of in terest, dividends, earnings or royalties without 
restrictions provided that the accounts have been  closed and certified by an external auditor.59  
Payment of royalties to affiliated enterprises requi res the prior authorization of the BCRA where 
the sum involved is greater than US$100,000.  An investment may be repatriated once it has remained 
in the country for one year, subject to certain restrictions.60  In principle there is no quantitative limit 
on the repatriation of FDI;  nonetheless since Oct ober 2011 the repatriation of FDI in the form 
of funds invested in any new investment or stockh olding purchased in local enterprises and real estate 
must have been deposited and su rrendered on the unified free foreign exchange market (MULC).  
There is no requirement to prove the deposit of funds  for the repatriation of investments made prior 
to October 2011.  If the foreign currency was not  deposited via the MULC the investor must seek 
authorization from the Central Bank in order to repatriate the FDI.61  The prior authorization 
of the BCRA is required for any repatriation of FDI in  financial entities or in non-financial enterprises 
that control financial entities. 
43. Foreign investment is allowed without restriction in all sectors except fisheries, the media62, 
arms and munitions, the purchase of land and real estate in certain areas and cabotage services.  
Argentina restricts foreign stockholdings in the media to 30% of the capital (and votes) but has 
allowed higher holdings under reciprocal contracts with countries that authorize foreign investment 
in their media, up to the limit allowed in those countries.63  The restriction does not include media that 
were under foreign control prior to 2003.64  In the transport sector, air and maritime cabotage services 
are reserved to Argentine enterprises although exceptions may be authorized (Chapter IV). 
44. In 2011 the Regime to Protect the National Domain over Property, Possession and Tenure 
of Rural Land (or Rural Land Law) introduced restrictions on the acquisition of rural land 
by restricting purchase by foreigners to a maximum of  15% of all rural land and 1,000 ha in the "core 
area".65  Additionally, nationals of a single country may not acquire over 30% of all land available 
for purchase.66  The Rural Land Law is not retrospective.67  Foreign owners must be listed 
on the National Rural Land Register.68 
45. The Rural Land Law also prohibits foreigne rs, on grounds of national security, from 
purchasing real estate in the country's border area s and in areas bounded by major permanent bodies 
of water.  Nevertheless the Law also states that foreigners may, with the consent of the Ministry 
of the Interior, acquire real estate in areas where the border is secure.69 
                                                      
59 Harmonized text of Law No. 21.382/1993, Annex I to Decree No. 1.853/1993, Article 5 and Ministry 
of External Relations, International Trade and Worship (2010). 
60 Central Bank, Communication No. 4.662 of 11 May 2007. 
61 Central Bank, Communication No. A5237 of 28 October 2011. 
62 Journals and magazines;  radio broadcasting services and associated radio broadcasting services 
as set out in the Radio Broadcasting Law (Law No. 22.285/1980);  producers of audiovisual and digital content;  
suppliers of internet access;  an d public broadcasting enterprises (L aw No. 25.750/200 3, Article 3). 
63 Law No. 25.750/2003, Article 2 and Law No. 26.522, Articles 25 and 29. 
64 Law No. 25.750/2003, Article 2. 
65 Article 10 of Decree No. 274/2012 defines the concept of "core area". 
66 Law No. 26.737/2011, Articles 8-10. 
67 Law No. 26.737/2011, Article 17. 
68 Law No. 26.737/2011, Article 12. 
69 Law No. 26.737/2011, Articles 10 and 13. Argentina WT/TPR/S/277/Rev.1 
 Page 37 
 
 
  46. To date Argentina has signed 55 reciprocal i nvestment promotion and protection agreements 
(IPPAs)70, and 17 double taxation conventions.71 
47. Argentina is a member of the Multilatera l Investment Guarantee Agency (MIGA) 
and of the International Centre for Se ttlement of Investment Disputes (ICSID).72  
Between 2007 and 2012, ICSID registered 14 claims by foreign investors against Argentina of which 
four have been settled.  The pending claims prin cipally concern transport services, and gas and water 
supply services.73  Between 2007 and 2012 shares were e xpropriated in Aerolíneas Argentinas S.A., 
Austral Líneas Aéreas Cielos del Sur S.A. and th e enterprises under its control, and in Yacimientos 
Petrolíferos Fiscales (YPF) S.A. and Reps ol YPF GAS S.A. (Chapters III and IV). 
(ii) Incentives for investment, manufacturing and trade 
48. Argentina has various incentive programmes at  national and provincial level that aim 
to promote national and foreign investment, comp etitiveness and exports (Chapter III).  There are 
a number of horizontal and sectoral incentives and programmes that seek to stimulate investment in capital goods and technological innovation, prom ote the development of small and medium-sized 
enterprises (SMEs), and facilitate access to credit at preferential or fixed interest rates.  Incentive 
programmes continue to be implem ented to encourage investment in  certain sectors of the economy.
74  
Argentina also has incentives that are granted on a geographical basis and upon establishment in free 
zones (Chapter III(3)(iv)(a)).  These incentives are administered and gr anted by various agencies with 
regard to the aims the incen tive is intended to achieve. 
(a) Fiscal incentives 
Horizontal fiscal incentives 
49. Argentina does not have a general law awarding incentives;  instead the process is governed 
by a series of laws that can apply either to the entire economy (horizontal), to a single sector 
or in relation to specific schemes. 
50. Law No. 25.924/2004 on the Promotion of Invest ment in Capital Goods and Infrastructure 
Works ("LPI Law") established a special fiscal regi me for investments in capital goods (except cars) 
intended for use in industrial activity or infrastruct ure works.  Under the scheme, when enterprises 
purchase new capital goods they receive advance re fund of VAT and/or accelerated amortization 
of income/profits tax.75  The scheme's period of applicatio n was originally scheduled to end 
in September 2007 but was extended to 31 December 2012.76  In 2004 Arg$1.2 billion were allocated 
to the scheme to finance fiscal exemptions, with  a quota of Arg$200 million earmarked for SMEs;  
                                                      
70 For further information, see Ministry of External  Relations, International Trade and Worship (2010). 
71 Online information from the Federal Public Revenue Administration (AFIP), " Convenios para evitar 
la doble tributación internacional " [Conventions for the prevention of double taxation] Viewed at:  
http://www.afip.gob.ar/institucional/convenios.asp. 
72 Ministry of External Relations, In ternational Trade and Worship (2010). 
73 Online information from ICSID, "Sear ch ICSID Cases".  Viewed at:  
http://icsid.worldbank.org /ICSID/Front Servlet. 
74 For further information see Undersecreta riat for Investment Promotion (2010). 
75 Law Nos. 25.924/2004 and 26.360/2008. 
76 Law No. 26.360/2008, Article 2;  and Law No. 26.728/2011, Article 27.  See in addition online 
information from the Secretaria t for Industry "Investment Promotion Law".  Viewed at:  
http://www.sub-industria.gob.ar/lpi/legal.htm. WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 38 
  
  the total amount has not changed since 2004.77  To be eligible for the scheme, enterprises must submit 
an investment project that seeks to generate employment, has the backing of a bank guarantee 
and expenditure plans for funds amounting to at least 7.5% of the total amount of the project.78  
The investment project is opened for public tender at the Ministry of Industry (industrial activities) 
or the Ministry of Federal Pl anning, Public Investment and Services (infrastructure works).79  
Capital goods covered by the scheme may not be  transferred during the first three years.80  In general 
terms the award of a fiscal benefit is restricted to  just one type of tax:  one project cannot qualify 
simultaneously for advance refund of VAT and acceler ated amortization of income/profits tax unless 
the product of the project is exclusively for export or  concerns a clean production plan or a sustainable 
industrial reconversion plan.81  SMEs, however, can be granted both fiscal benefits.82 
51. Additionally, various mechanisms are in place to reduce tariffs or VAT on the purchase 
of capital goods.  Some of these require the be neficiary enterprises to purchase capital goods 
of domestic origin equivalent to a percentage of overall imports or to achieve certain export levels 
in order to qualify (Table II.7) (Chapter III).  The temporary import regime also allows importers 
or manufacturers to import capital goods free of duty but subject to the requirement that they must 
be re-exported for consumption within a (renewable) period of three years (Chapter III(3)).83 
Table II.7  
Fiscal incentives, 2007 and 2011  
Incentive (legal framework)  Beneficiary  Benefits and obligations 
Import regime for goods forming 
an integral part of major 
investment projects (Resolution 
No. 256/2000 (as amended))  Importers of new capital goods for 
major investment projects  Tariff reduction to 0%.  Exem ption from verification of 
destination tax.  Import of parts allowed up to 5% of the 
exported f.o.b. value.  Require ment to acquire capital goods 
of domestic origin for a value equivalent to 20% of all imports and prohibition on transferring imported goods for 
two years 
Import regime for used production 
lines (Resolution No. 511/2000 
(as amended) and Decree 
No. 2.259/2009)  Manufacturers of tangible goods.  
Financial entities and/or leasing 
companies  Extra-zone import duty of 6%.  Exemption from payment of 
the statistical tax and the veri fication of destination tax.  
Requirement to import used goods with 50% of their useful 
life remaining and purchase goods of domestic origin amounting to 40% of the total imports 
VAT reduction (Decree 
Nos. 493/2001, 496/2001, 615/2001, 733/2001 and 959/2001) Purchasers/importers of finished 
capital goods and information technology and 
telecommunications products 
(components and finished products) VAT rate reduced to 10.5% 
                                                      
77 Law No. 25.924/2004, Article 11;  and Law No. 26.360/2008, Article 6. 
78 Law No. 26.360/2008, Article 2;  Law No. 26.728/2011, Article 27;  and Decree No. 726/2009, 
Articles 13 and 15. 
79 Decree No. 726/2009, Articles 1 and 9. 
80 Online information from the Undersecretariat for Industry, Beneficiarios .  Viewed at:  
http://www.sub-industria.gob .ar/lpi/beneficiarios.htm. 
81 Law No. 26.360/2008, Article 3 and Decree No. 726/2009, Articles 8 and 10. 
82 Law No. 26.728/2011, Article 27. 
83 Undersecretariat for Investment Promotion (2010). Argentina WT/TPR/S/277/Rev.1 
 Page 39 
 
 
  Incentive (legal framework)  Beneficiary  Benefits and obligations 
Technical VAT balance  (Decree 
Nos. 280/2001, 733/2001 
and 496/2001) Manufacturers of capital goods and 
information technology and 
telecommunications products  Difference between VAT paid on the purchase of inputs 
(21%) and VAT paid on the sale of the finished product 
(10.5%).  Option to use the balance to pay taxes 
Promotion of production of capital 
goods, information technology and 
telecommunications products, and 
agricultural machinery  (Decree 
Nos. 379/2001 (as amended) 
and 917/2010) Manufacturers of capital goods, 
information technology and 
telecommunications products and agricultural machinery  Tax voucher to the value of 14% of the amount resulting 
from the deduction of the value of imported inputs from the 
sales price.  The tax voucher is used for the payment of national taxes 
Source:  Ministry of External Relations, In ternational Trade and Worship (2010), Guide for Investors 2011:  ¿Cómo hacer 
negocios en Argentina? , Viewed at:  http://www.inve rsiones.gov.ar/es/descargas/ Gu%C3%ADa-del-Inversor/Gu% 
C3%ADa-del-Inversor-2011/;  Undersecretar iat for Investment Promotion (2010), Incentivos a la Inversión:  
ventajas de invertir hoy .  Viewed at:  http://www.inversiones. gov.ar/es/descargas/ Guia_del_Inversor/ 
incentivos-a-la-inversion/In centivos-a-la-Inversión-2010/, and online information from the Ministry of the 
Economy and Public Finance Base de datos de Instrumentos para el  Desarrollo Productivo:  Jurisdicción 
nacional:  Beneficios impositivos y/o fiscales:  Alcances horizontal y sectorial:  Temas de inversión y 
competitividad  Viewed at:  http://www.instrumentos.mec on.gov.ar/intro_esquema.php. [Link broken] 
Sectoral fiscal incentives 
52. Incentives are also available for specific sector s, namely fiscal benefits (tariff reductions, 
issue of vouchers for payment of nationa l taxes, and fiscal stability arrangements) 
and/or non-repayable contributions (ANR) to promote investment, production, innovation and competitiveness in specific sectors.
84  The sectors that have benefited include agriculture 
and forestry;  capital goods, informa tion technology and telecommunications85;  the automotive, 
motorcycle and parts industry86;  the petroleum, gas and biofuels industry87;  mining88;  shipbuilding89;  
biotechnology90 and tourism91 (Chapter IV). 
                                                      
84 For further information, see Undersecretariat for Investment Promotion (2010) and online 
information from the Ministry of the Economy and Public Finance Instrumentos para el desarrollo productivo .  
Viewed at:  http://www.instrumento s.mecon.gov.ar/intro_esquema.php. 
85 Capital goods, information technology and telecommunications (Decree No. 379/2001) and 
Promotion Regime for the Software Indust ry (Law No. 25.922) (viewed at: http:// 
www.instrumentos.mecon.gov.ar/mensajes-ver-mensajes.php?id_prog=1024&order=fecha desc&cantidad=). 
86 MERCOSUR Automotive Regime, Law on the Development and Consolidation of the National 
Automotive Parts Sector (Law No. 26.393) and Local Investment Incen tive Scheme for the Manufacture 
of Motorcycles and Automotive Parts (Law No. 26.457). 
87 Oil Plus Programme, Gas Plus Programme, Refining Plus Programme, Regulatory and Promotion 
Regime for the Sustainable Production and Use of Biofuels (Law No. 26.093). 
88 Promotion of Mining Activities (Law No. 24.196). 
89 Import Regime for the Shipbuilding Industry (Decree No. 1.010/2004). 
90 Promotion of the Development and Production of Modern Biotechnology (Law No. 26.270 
and Decree No. 983/2007). 
91 National Tourism Investment Programme;  Tourism Line 400;  Investment Credit Line for Tourism 
and Hotel Services;  Technical and Financial Assistan ce Programme for Regional Exportable Production;  
Technological Support for the Tourism Industry;  and Programme to Enhance and Promote Tourist Destinations 
(Profode) (online information from the Ministry of the Economy and Public Finance, Instrumentos para el 
desarrollo productivo .  Viewed at:  http://www.instrumentos.mecon.gov.ar). WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 40 
  
  Regional fiscal incentives to promote investment and industrial development 
53. Argentina also has fiscal incentives to pr omote investment in the various regions 
of the country.92  The purpose of these schemes is to co mpensate for the disadvantages inherent 
in the geographical location of the various re gions, both in terms of distance from centres 
of consumption and suppliers, and in  terms of infrastructure.  The provinces also have their own laws 
providing for fiscal incentives to promote investment and industrial development (Table II.8). 
Table II.8  
Provincial fiscal incentives  
Province and legal 
framework  Beneficiaries  Benefits  
Buenos Aires 
Law on Promotion of 
Industry (Law No. 13.656/2008 and 
Decree No. 523/2008) Activities regarded as priorities under the current 
Industrial Development Plan, with the exception 
of microenterprises and SMEs for which all physical, chemical or physical-chemical 
processes conducted at their place of business 
are eligible for the benef its set out in the Law.  
In the event of expansion, the increase 
in theoretical production capacity required to 
become eligible for the be nefits must be at least 
50%.  When a new production process is adopted 
the new investment must be greater than 30% of 
the value of the existing fixed assets. Full exemption from all provincial taxes 
for 10 years.  Access to finance on preferential 
terms.  Discounts on the cost of electricity, gas, water and communications services. 
Catamarca Law on Economic Promotion 
and Fiscal Incentives 
(Law No. 5.238/2008 and Decree Nos. 641/2008 and 
1.705/2008) Activities that have no presence in the region but 
have a high impact on its development.  Agrifood 
industries, containers, packaging, textiles, 
footwear that add value to output.  Enterprises that are part of and/or complementary to 
production chains for olives, vines, walnuts, 
livestock and direct and/or indirect services provided in respect of those chains.  Innovative 
production ventures.  Activities that promote 
the marketing and consumption of products outside the province. Full exemption from all provincial taxes 
for 10 years.  Tax credit equivalent to a maximum 
of 40% of the investment, 30% of operating 
expenditure and 25% of the minimum wage for each permanent new job created.  
Córdoba Provincial Law No. 9.611 
(Incentives for Investment 
and Local Production) Agricultural producers and rural contractors 
in Córdoba. Repayment of 10% on purchases of agricultural 
machinery, agricultural equipment and high 
technology fittings to enterprises 
and concessionaires established in Córdoba. 
Corrientes 
Industrial Development Trust 
Fund (Law No. 5.684/2005 and Decree No. 306/2006) Physical or legal persons under private law who 
run business ventures or expand existing 
industrial or services-related business ventures;  generate or expand i ndustrial, manufacturing 
or remanufacturing production capacity;  
or generate new products, services or processes. Subsidies for recruiting and training staff.  
Subsidies for interest rates on loans to be used 
in industrial investment and the payment of industrial electricity tari ffs and other expenses.  
Non-repayable contributions for technological 
innovation.  
Jujuy 
Law on Promotion of 
Industry (Law No. 4.392/88) Physical and legal persons domiciled 
in the province. Loans at a subsidized rate, technical assistance, tax 
and/or fiscal benefits, financial facilities. 
Mendoza 
Scheme to Attract 
Investment and Promote 
Employment (Law No. 8.019/2009)
a Physical and legal persons established 
in the Argentine Republic whose principal 
activity is conducted in the territory 
of the province of Mendoza. Tax credit for creating employment, valid for 
a maximum period of five years.  Full exemption 
from all provincial taxes for 10 years.  Fiscal 
stability for 10 years.  Tax credit amounting to a maximum of 30% of the total investment in new 
ventures.  Wage subsidies and an interest subsidy 
regime for production loans. 
                                                      
92 For example:  Special Tax and Customs Regime for Tierra del Fuego, Antarctica 
and the South Atlantic Islands (Law No. 19.640);  Patagonia Rural Development Project (Proderpa);  
Law No. 22.021 on the Promotion of the Provinces of San Luis, La Rioja and Catamarca (online information 
from the Ministry of the Economy and Public Finance, Instrumentos para el desarrollo productivo .  Viewed at:  
http://www.instrumentos.mecon.gov.ar). Argentina WT/TPR/S/277/Rev.1 
 Page 41 
 
 
  Province and legal 
framework  Beneficiaries  Benefits  
Neuquén 
Provincial Law No. 378 (Economic Promotion - 
Regulation No. 664) Enterprises established in Neuquén. Exem ption from provincial taxes and duties on 
legal instruments concerning the establishment and/or registration of companies, partnerships 
and/or entities making the proposed investment.  
Sale at fiscal price of publicly owned land where essential to secure the investment.  Commitment 
by the provincial State not to authorize the 
establishment of another similar industry at provincial level for a pre-determined time-limit.  
Technical advice to the proposers.  Commitment to 
give preference in all tenders for the provision or execution of public works to products obtained 
from a benefiting establishment, provided that in 
terms of quality and cost they match products from outside the province. 
Salta Promotion of Investment in Production and Employment 
(Law Nos. 6.771/1995 and 
6.910/1996 and Decree No. 2.931/1997) Agricultural producers, microenterprises 
and SMEs, enterprises in general engaged in primary projects, industr y, construction, mining 
(except for hydrocarbons), tourism, commerce 
and the output of services, established in provincial territory and generating new 
investment and employment. Exemption from a percentage of provincial taxes 
for 10 years. 
San Luis Investment Promotion Law 
(Law No. VIII-0664-2009) Physical or legal persons, whether Argentine 
or non-Argentine, who invest in ventures 
involving activities in the fields of production, 
industry, agriculture, livestock, mining, real-estate, tourism, new technology, alternative 
energy sources or services in sums in excess 
of Arg$150,000. Exemption from provincial taxes on gross 
earnings, real estate, stamp duties, motor vehicles, 
trailers and motorcycles for 15 years on a scale as 
follows:  100% for the first five years;  50% for the next five years;  25% for the last five years.  
Non-transferable, named Tax Credit Certificate for 
an amount not exceeding 50% of the provincial taxes payable as a result of the investment project;  
to be used to pay any provincial tax payable by the 
taxpayer.  Purchase of public land to construct industrial plant to implement the investment 
project;  payable in five years free of interest, 
and with one year's grace.  Decreasing subsidies for persons who recruit recipients under the Social 
Inclusion Labour Plan for San Luis, for up to 
two years.  Subsidies on the interest rate on the project:  full or partial refund of interest payable 
on any loan taken out. 
Santa Cruz 
Provincial Law No. 3.092 
(Law on Provincial Industrial 
Development and Promotion) Physical or legal persons, whether Argentine or 
non-Argentine, domiciled in the provincial 
territory.  Priority to secondary industries in the 
sectors of agriculture, liv estock, forestry, mining, 
hydrocarbons, energy, fisheries, tourism, that 
meet some of the following non-exhaustive list 
of conditions:  (a) they use raw materials, semi-manufactured products and natural resources originating in the province;  (b) they 
enable the production of inputs required by the 
principal economic activities in the province and/or added value to raw materials for 
subsequent marketing pr ovincially, nationally or 
internationally;  (c) they have a multiplier effect 
on the provincial economy. Refund of a maximum of 40% of the new 
investment made or of the increase in existing 
investments.  Exemption from existing or future 
provincial taxes for a peri od of up to ten years, 
with an option for 15 years.  Subsidy amounting to 
up to 50% of the supply costs of electricity, water 
and sewerage services for a period not exceeding four years.  Subsidies of up to 49% on the interest rate on credit lines applied by Banco Santa Cruz 
S.A. in respect of recipient enterprises.  Transfer 
of use of provincial land required for the construction of production-related infrastructure.  
Non-repayable provincial contribution for activity 
in the ports of Santa Cruz for up to four years. 
Santiago del Estero Provincial Industrial Promotion and Development 
System Physical and legal persons established under 
public, provincial or private law, established or authorized to operate in the country and foreign 
investors who establish a legal domicile in the 
province. Refund of up to 30% of the investment over 
a maximum five-year period.  Repayment of up to 50% or tax credit for the payment of provincial 
taxes for infrastructure works.  Full or partial 
exemption on sliding scale from provincial taxes for 10 years.  Subsidies of up to 50% on 
the interest rate for loans. WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 42 
  
  Province and legal 
framework  Beneficiaries  Benefits  
Tucumán 
Investment Promotion System (Law 
No. 7.886/2007) and 
Emergency Decree on grounds of Necessity or 
Urgency No. 14/2008
b Physical or legal persons, whether Argentine or 
non-Argentine, who are established or authorized to operate in the country and establish a legal 
domicile in the province and whose projects 
justify investment in ventures established in the province. Exemption from provincial taxes for 15 years.  
Exemption from increases in the provincial tax burden for 15 years.  Subsidy of up to 50% on the 
interest rate for credit lines.  
a Applied only to activities in the fi elds of software, call centres, web- hosting and technological innovations. 
b Law No. 6.699/1995 introduced the Industrial Promo tion Scheme into the province of Tucumán.  
Repealed by Law No. 7.886/2007. 
Source:  Online information from the Ministry of  the Economy and Public Finance, Base de datos de Instrumentos para el 
Desarrollo Productivo:  Jurisdicción provincial :  Beneficios impositivos y/o fiscales:  Tema de inversión .  Viewed 
at:  http://www.instrumentos .mecon.gov.ar/intro_esquema.php. 
(b) Credit programmes 
54. Investors have access to lines of credit at pr eferential rates through institutions such 
as the Bank of the Argentine Nation (BNA), th e Investment and Foreign Trade Bank (BICE), 
the Federal Investment Council (CFI) and bodies such  as the Secretariat for Small and Medium-Sized 
Enterprises (SEPYME).93  The aim of the programmes incl udes the promotion of investment, 
industrial competition and the consumption of goods produced in Argentina by offering medium term 
and long-term finance to sectors of the economy or regions of the country that are not conventional credit recipients, such as microenterprises and SMEs .  This type of credit is principally granted 
to projects that promote investment, generate em ployment, strengthen produc tion chains and enhance 
regional development. 
Table II.9  
Financing of investment and competitiveness, 2007 and 2012  
(Arg$ million) 
 
Description  Amount granted  
2007  2012  
Bank of the Argentine Nation (BNA) credit lines    
 Productive Investment Financing Facility - SEPYMEYDR (Assistance Programme for the 
Establishment of Productive Clusters) and BNA.    
 Provision of finance to purchase capital goods of domestic origin, including new IVECO lorries 
manufactured in Argentina.  Finance at a fixed intere st rate for construction, plant, other equipment, 
technology for investment projects.   Interest-rate subsidy of two annual percentage points for users 
of the SEPYMEYDR facility.  .. .. 
 BNA and EMPRETEC Foundation Programme to  finance innovative business ventures.    
 New business ventures that have not entered the ma rket and plan to do so within six months of 
disbursement of credit.  Young businesses where le ss than two years have elapsed since the first 
fiscally registered sale. .. .. 
Bicentennial Productive Financing Programme    
 Credit granted at a fixed annual interest rate (in Argentine pesos) of 9.990% for a five-year loan. n.a.  4,530  
                                                      
93 For example SEPYME (www.sepyme.gov.ar) and the Social Capital Fund (FONCAP) S.A. 
(www.foncap.com.ar) (online informati on from the Faculty of Agronomy at the University of Buenos Aires, 
Información sobre organismos y entidades que ofrecen financiamiento a emprendimientos .  Viewed at:  
http://www.agro.uba.ar/unpuente/contenidos6.html). Argentina WT/TPR/S/277/Rev.1 
 Page 43 
 
 
   
Description  Amount granted  
2007  2012  
Investment and Foreign Trade Bank (BICE) credit lines   
 Programme to Finance Investment   
 Finance for the purchase of capital goods for invest ment projects in the field of the production of 
goods and services 123,527  182,420  
 Finance for Renewable Energy Investment n.a.  28,972  
 Finance for Projects in the field of Moderniza tion and/or Technological Innovation in the Sector 
producing Goods of Domestic Origin (FONTAR) n.a. 9,552  
 Finance for Investment in Environmenta l Improvement in Production Sectors n.a.  0 
 Programme to Co-Finance Investment n.a.  8,400  
 Finance for Regional Economies 57,228  2,496  
 Programme to Finance Invest ment - Blended Rate   
 Finance projects to invest in and purchase new capita l goods, regardless of whether or not they need 
to be registered, for the purposes of an investment  project.  Finance amounting to up to 80% of the 
total amount of the project excluding VAT.  Fina nce for imported goods may not exceed 30% of all 
BICE assistance allocated to the project. .. .. 
 CAE-BICE   
 Financial facilities for enterprises producing goods legally established in the country that have 
invoiced up to Arg$200 million.  The amount to be financed by the credit must be between Arg$1 
and Arg$4 million, excluding VAT, and may cover up to 80% of investments required by the 
enterprise under the approved project.  The interest rate to be charged on the loan is a blend where 
85% comprises a fixed component of 6.45% annua lly (nominal annual rate or TNA), and 15% 
comprises a variable component calculated by a dding a fixed margin of 150 basis points (1.50%) 
to the TNA. n.a. .. 
 Subline financing Capital Goods of Domestic Origin   
 To finance the purchase of capital goods of domestic  origin.  The interest rate to be charged 
on the loan is based on the enterprise's annual sales   
.. Not available. 
n.a. Not applicable. 
Source:  Undersecretariat for Investment Promotion (2010), Incentivos a la Inversión:  ventajas de invertir hoy  Viewed at:  
http://www.inversiones.gov.ar/es/descar gas/Guia_del_Inversor/incentivos-a-la- inversion/Incentivos-a-la-Inversión
-2010/, and online information from the Minist ry of the Economy and Public Finance Instrumentos para el 
desarrollo productivo .  Viewed at:  http://www.instrumentos.m econ.gov.ar/intro_esquema.php and information 
from the Argentine authorities. 
55. The BNA plays an important role in the country's development policy, for example 
by providing assistance to SMEs and businesses in lo cations of low economic vitality that are a long 
way away from major centres.  Additionally the B NA promotes and supports external trade, notably 
by encouraging the export of Argentine goods, services and technology, and provides financial 
assistance to "enterprises producing" goods and servi ces, credit for investment and working capital, 
and awarding finance and guarantees to external trade activities.94  The BICE, a financial institution 
for development established in 1992, is a second tier public bank that awards medium and long-term 
credit to promote productive investment and foreign trade among Argentine enterprises.95  
The CFI is a federal body whose aim is to prom ote the harmonious development of Argentine 
provinces and regions by directing investment towards all sectors in the national territory. 
                                                      
94 Online information from the BNA.  Viewed at:  
http://www.bna.com.ar/institu cional/institucional.asp. 
95 It has also made direct loans to businesses since October 2003 (online information from the BICE.  
Viewed at:  www.bice.com.ar Créditos para Inversión .  Viewed at:  http://www.b ice.com.ar/bice_en/index.asp). WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 44 
  
  (c) Support for research, development and improving competitiveness. 
56. The Ministry of Science, Technology and Innovative Production was established 
in December 2007 and was entrusted with ge nerating competitiveness and strengthening 
the "Argentine model of production" through r esearch and innovation in science and technology.96  
The National Agency for the Promotion of Scie nce and Technology (ANPCyT), established in 1996, 
and the Federal Science and T echnology Council (COFECyT), est ablished in 1997, have been 
agencies of the Ministry since 2007 and are respons ible for promoting investment in scientific 
and technological projects.97  To that end the ANPYyT administer s four funds and the COFECyT five 
credit lines (Table II.10).  To be eligible for finan ce, projects must promote applied scientific research 
and "precompetitive technology" a nd adapt or improve technologies. 
57. The number of programmes run by both the ANPCyT and the COFECyT increased during 
the period of this Review.  In 2008 the ANPCyT launched a new fund, the Argentine Sectoral Fund, and the COFECyT established two new credit lines  to support technological development within 
municipalities and the tourism sector.
98  As at 2011, the four funds administered by the ANPCyT 
offered 22 credit lines, some ex clusively to finance SMEs.99  The recipient enterprises and institutions 
can choose to receive "non-repayable contributions (ANR)", loans or ta x credits.  The benefits granted 
under these programmes rose between 2007 and 2011 (Table II.10).100  Projects are selected through 
a public tendering process.101 
Table II.10  
Incentives for research, development and improving competitiveness, 2007 and 2011  
(Arg$ million) 
 Amount granted in 2007  Amount granted in 2011  
Support  Credit  Tax 
credit  Total  Support  Credit  Tax 
credit  Total  
ANPCyT Funds          
Argentine Technological Fund (FONTAR) 33.4  161.9  22.6  217.9  134.9  110.5  40.0  285.4  
Scientific and Technological Research Fund 
(FONCyT) 182.5 n.a. n.a. 182.5 243.5  n.a. n.a. 243.5  
Trust Fund for Promotion of the Software 
Industry 6.9 0.6 n.a. 7.5 59.0  0.3 n.a. 59.3  
Argentine Sectoral Fund (FONARSEC) n.a. n. a. n.a. n.a. 306.7  n.a. n.a. 306.7  
Total  222.8  162.5  22.6  407.9  744.1  110.8  40.0  894.9  
COFECyT credit lines          
Technological Support for the Tourism 
Industry (ASETUR) n.a. n.a. n.a. n.a. 24.0 n.a. n.a. 24.0 
                                                      
96 Online information from the Ministry of Science, Technology and Productive Innovation, 
El Ministerio:  Presentación .  Viewed at:  http://www.mincyt.gov. ar/ministerio/presentacion/index.php. 
97 Decree Nos. 1.660/1996 and No. 1.113/1997. 
98 National Agency for the Promotion of Science and Technology (2011) and online information from 
the Federal Science and Technology Council, Líneas de financiamiento .  Viewed at:  
http://www.cofecyt.mincyt.gov.ar/Linea_financiamiento.htm. 
99 National Agency for the Promotion of Science and Technology (2012) and online information from 
the National Agency for the Promotion of Science and Technology.  Viewed at:  http://www.agencia.gov.ar. 
100 National Agency for the Promotion of Science and Technology (2012). 
101 Online information from the National Agency for the Promotion of Science and Technology.  
Viewed at:  http://www.agencia.gov.ar.  Online informa tion from the Federal Science and Technology Council.  
Viewed at:  http://www.cofecyt.mincyt.gov.ar/, and on line information from the Ministry of the Economy 
and Public Finance, Instrumentos para el desarrollo productivo .  Viewed at:  
http://www.instrumentos.meco n.gov.ar/intro_esquema.php. Argentina WT/TPR/S/277/Rev.1 
 Page 45 
 
 
   Amount granted in 2007  Amount granted in 2011  
Support  Credit  Tax 
credit  Total  Support  Credit  Tax 
credit  Total  
Municipal Technological Development 
Projects (DETEM) n.a. n.a. n.a. n.a. 33.6 n.a. n.a. 33.6 
Federal Projects for Innovation in 
Production (PFIP) 14.4 n.a. n.a. 14.4 n.a. n.a. n.a. n.a. 
Federal Projects for Innovation in 
Production – Linkages in Production (PFIP 
- ESPRO) 14.4 n.a. n.a. 14.4 43.2 n.a. n.a. 43.2 
Institution-Building Projectsa  - n.a. n.a. - - n.a. n.a. - 
Total  28.8 n.a. n.a. 28.8 100.8 n.a. n.a. 100.8 
n.a. Not applicable. 
a Line not used. 
Source:  Online information from the National Agency for the Prom otion of Science and Technology (ANPCyT).  Viewed 
at:  http://www.agencia.gov.ar/spip.php?a rticle49, online information from th e Federal Science and Technology 
Council (COFECyT).  Viewed at:  http://www.cofecyt.minc yt.gov.ar/, and information provided by the Argentine 
authorities.  
(d) Micro, small and medium-sized enterprises (MSME) 
58. The MSME sector continues to be extremely important to the Argentine economy 
and a priority of the national development strategy;  the State therefore seeks to foster and promote the sector through various support programmes.  Th e sector generates around 65% of employment 
and accounts for 40% of GDP.
102  Exports from MSMEs represent 15% of the national total.103 
59. The operation of MSMEs in Argentina is gove rned by Law No. 24.467 as amended, which 
seeks to promote their growth and devel opment by creating new support instruments 
and consolidating those already in place.  Since the Law was promulgated the State has continued 
to develop credit instruments and tools for technical assistance and training by introducing an interest subsidy regime to reduce the cost of credit, s tipulating that the BNA and the BIUCE must have 
special credit lines available to MSMEs, a nd establishing a system of Mutual Guarantee 
Societies (SGR).  Argentina promotes the form ation of consortia of SMEs, especially those 
that are export-oriented.
104 
60. The National Fund for Microenterprise and SME Development (FONAPyME) 
was established in 2000 under the MSMEs Develo pment Law (Law No. 25.300) to provide capital 
contributions and medium and l ong term finance for investment.  The Microenterprise, Small 
and Medium-Sized Business Guarantee Fund (FOGAPy ME) was also established, as was the training 
tax credit scheme and the Compremipyme Progr amme requiring national Argentine public bodies 
to apply a 5% preference rate to tenders from MSMEs supplying goods or services produced 
in Argentina for purposes of comparison with the best tender.  Compremipyme also stipulates 
a minimum preference rate of 10% in tenders or  bids for the procurement of goods and services 
in which only MSMEs are competing (Chapter III (4)(v)). 
61. The objective of the Secretariat for Small and Medium-Sized Enterprises and Regional 
Development (SEPYMEyDR) at the Ministry of I ndustry is to support the development of MSMEs 
through various programmes, including tax credit  programmes for training;  perform analyses 
                                                      
102 Information provided by the authorities. 
103 Information provided by the authorities. 
104 Law No. 24.467/95. WT/TPR/S/277/Rev.1 Trade Policy Review 
Page 46 
  
  and implement action plans to improve manageme nt and competitiveness;  and provide improved 
access to credit through the interest subsidy regi me and direct credit under FONAPyME.  Since 2010, 
access to SEPyME's assistance programmes and other programmes focused on MSMEs has been available to enterprises whose total sales in Argen tine pesos are not higher than figures specifically 
provided for in the law (Table II.11).  An SME must be in compliance with its tax obligations in order 
to be eligible to access the benefits. 
Table II.11  
Definition of enterprise 
(Arg$ million)  
 Agriculture  Industry and mining  Commerce  Services  Construction  
Micro 0.61 1.8 2.4 0.59 0.76 
Small  4.1 10.3 14 4.3 4.8 
Medium-sized 24.1 82.2 111.9 28.3 37.7 
Source:  Resolution No. 21/2010. 
62. The Government's policy on SMEs does not comprise only the programmes run 
by the SEPyME.  MSMEs are also eligible for specific programmes run by various institutions 
(Table II.12).  The provinces also have specific programmes to assist MSMEs. 
Table II.12  
Support programmes for MSMEs, 2007 and 2012  
(Arg$ million)  
 
Description  Amount granted  
2007 2012 
Finance programmes    
 Investment Finance in Productive Industries for Various Activities - BNA    
 Finance amounting to up to 80% of the value of the purchase or charge, excluding VAT, at subsidized interest 
rates for the procurement of new capital goods of domestic origin to be used in construction, installation and purchase of equipment and technology in investment projects.  Interest rate subsidized by the BNA 
and the SEPyME.  Subsidy individually determined, depends in particular on the domicile of the enterprise.  .. 526.9
a 
 Regional and Sectoral Development Programme (PRODER) - BNA    
 Credit line for assisting the implementation of sectoral projects promoted through various intermediate 
organizations (chambers, associations, federations, development agencies and others) that focus on the sector's 
common objectives.  The loan can be used to finance up to 90% of the total investment at an interest rate set 
at 60% of the rate paid on the general BNA portfolio plus a subsidy of 5 points. b b 
 Investment and Foreign Trade Bank (BICE) credit lines   
 SME Stimulus Programme:  Credit line in Argentine pesos with a fixed rate subsidized by the Undersecretariat 
for SMEs. .. .. 
 Credit Line for SMEs and Cooperatives - BICE   
 Finance investment projects for SMEs and cooperatives.  The interest rate to be charged on the loan will be 
based on the annual sales figures for the SMEs and cooperatives. .. 0.1 
 Working Capital Finance Programme for MSMEs - BICE   
 Credit line to finance working capital for various economic activities.  Maximum amount of finance is 
Arg$300,000 at a fixed interest rate of 11% (TNA). .. .. 
Federal Investment Council (CFI) credit lines    
 Revival of production:  credit to finance working capital, fixed assets and preinvestment.  Regional Exportable 
Production:  credit to prefinance exports and support exportable production (working capital, fixed assets and preinvestment). 132.3 130.3 
Subsidized credit   
 The State assumes responsibility for a proportion of the financial cost of bank loans for the procurement of new 
capital goods, the formation of working capital, prefinancing and financing of exports, etc. .. .. 
SEPYME interest subsidy regime   
 Credit lines subsidized by financial entities.  Credit granted for the procurement of capital goods and for working 
capital.  The subsidized proportion ranges between 3 and 8 percentage points, based on the level of development in each region, but does not exceed 50% of the rate offered. 199.0 1,333.0  Argentina WT/TPR/S/277/Rev.1 
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Description  Amount granted  
2007 2012 
National Fund for Microenterprise and SME Development (FONAPyME)   
 To finance projects directed at the domestic market with the principal emphasis on replacing imports, generating 
added value and employment, and promoting regional development.  For investment projects, capital goods, 
construction and plant (up to 70% of the project) and raw materials (only those associated with the project and up 
to 10% of the amount of credit).  Interest rate set at 50% of the rate paid on the general BNA portfolio, equivalent to 9.43% annually (April 2012). 9.0 159.0 
Direct support fo r Businesses - Competitiveness an d Credit Access Programme (PACC)   
 To co-finance through non-repayable contributions up to 60% of the investment in technical assistance 
and/or training in activities identified as important for improving competitiveness.  The maximum ANR 
is Arg$90,000 but it must not account for more than 60% of the investment made.  Non-eligible businesses are businesses in the brokerage, financial, insurance, professional legal or accountancy services sectors;  businesses where more than 49% of the stock is held by foreigners;  and importing businesses where the turnover on 
imported goods accounts for more than 25% of total turnover. .. 118.0 
Other support programmes    
 Tax Credit Scheme for SMEs and Large Businesses - MTEYSS   
 Participating businesses receive tax credit certificates that may be used to pay income/profit taxes, presumptive 
minimum profit tax, domestic taxes and VAT.  SMEs can finance projects for the equivalent of 8% of their 
total annual payroll plus their respective employer contributions. 7.7 28.0 
 Support for Local Production Systems   
 Technical assistance, training and market access through non-repayable contributions for Argentine SMEs 
belonging to a Local Production System. 0.3 4.5 
 Training Tax Credit   
 Tax benefits to be used for technical assistance.  Issue of endorsable tax credit certificates that can be used 
to pay taxes collected by the Federal Public Revenue Administration. .. .. 
. Not available. 
a To August 2012. 
b Over the period 2006-201 1 Arg$5,589,634 were allocated to FO MICRO and Arg$34,06 9,737 to FONDER.  
Source:  Undersecretariat for Investment Promotion (2010), Incentivos a la Inversión:  ventajas de invertir hoy .   
Viewed at:  http://www.i nversiones.gov.ar/es/ descargas/Guia_del_Inversor/in centivos-a-la-inversion/ 
Incentivos-a-la-Inversión-2010/, and online information fro m the Ministry of the Ec onomy and Public Finance, 
 "Instrumentos para el Desarrollo Productivo ".  Viewed at:  http://w ww.instrumentos.mecon.gov.ar/ 
intro_esquema.php.